EU Explores Interim Funding Options for Ukraine Amid Potential Loan Delays in 2026
The European Union is preparing for a potentially challenging financial support situation for Ukraine in the upcoming year.
According to Valdis Dombrovskis, European Commissioner for Economy, there is a possibility of implementing a temporary funding mechanism if agreements on a loan based on frozen Russian assets are delayed.
The European Commission proposes utilizing profits from Russian Central Bank assets, notably those frozen in the Belgian securities depository Euroclear, to establish a short-term credit scheme aimed at financing Ukraine in 2026–2027.
However, before this plan can be approved, EU member states need to address several legal and financial risks related to Belgian assets and guarantee schemes.
While countries have expressed willingness to assist Kyiv, specific steps remain undefined.
Dombrovskis emphasized that delays could complicate the situation and jeopardize the swift financial support Ukraine requires, especially as it may face a cash deficit from early 2026.
Ukrainian Prime Minister Yulia Sviridenko stated her government expects to secure reparations credit by spring, around April, while the IMF program could commence as early as January, independently of the reparations initiative.