EU preps substantial financial package for Ukraine: reparations credit possibility soon
The European Union is expected to soon unveil a comprehensive plan for financial support to Ukraine in the form of a so-called ‘reparations loan.’ Leaders of EU member states may bring this issue to discussion at the upcoming European Council summit scheduled for October 23-24.
Valdis Dombrovskis, the EU Commissioner for Economy and Productivity, announced this during a speech in the European Parliament, emphasizing Ukraine’s need for additional financial aid to strengthen its defense capabilities and stabilize its economy.
He highlighted that the EU is actively working towards a fair and equitable distribution of financial burdens among international partners to assist Ukraine amid the ongoing conflict.
Notably, the initiative proposed by European Commission President Ursula von der Leyen has received full support within the legal framework — aligning with international laws.
Dombrovskis stated that ‘this credit mobilizes significant funds for Ukraine and sends a clear signal to Russia that its aggression will not succeed.’ He also noted that Ukraine commits to repaying these funds only after Russia provides compensation for damages inflicted.
Furthermore, he recalled that in 2024, the EU already unlocked €45 billion from the proceeds of frozen Russian assets.
This demonstrates the West’s intention to finance Ukraine using profits from assets frozen in sanctions.
According to Dombrovskis, over €25.3 billion from these assets has already been paid out.
The EU official emphasized that Russia, as the aggressor state, is beginning to bear financial responsibility for the destruction caused in Ukraine, illustrating that aggression has its price.
German Chancellor Olaf Scholz also announced that during the upcoming EU summit, leaders will consider utilizing frozen Russian assets to provide Ukraine with a €140 billion loan.
He stressed that support for Ukraine remains unwavering and that President Vladimir Putin must realize this support will not diminish but will grow stronger in the fight for justice and sovereignty.