Brussels: EU loan is the only alternative to frozen assets
The Commission had drawn up that proposal at the request of EU member states, which committed last month to finance Ukraine for the next two years. The manner in which this was done was not yet clear.
Many Member States and the Commission itself see a loan of more than 140 billion based on the frozen Russian assets as the best option. Belgium, where the frozen assets are located, continues to defend itself against this. The country still does not see enough guarantees from all EU member states to share the financial risks for this.
Commission President Ursula von der Leyen said Belgium’s concerns had been “carefully listened to” and “almost all concerns” had been taken into account in the proposal. For example, safeguards have been drawn up that should protect member states and financial institutions against possible Russian retaliation. She also says the EU will “share the burden”.
Belgian Prime Minister Bart De Wever said on Wednesday morning that a repair loan is not an option under the “current conditions”.
The alternative would be an EU loan separate from the EU budget, the Commission says. Another option, that Member States themselves release money in their budgets for Ukraine, is no longer included in the Commission’s proposal.
Brussels wants EU leaders to make a clear decision on which financial proposal they will agree to during the EU summit on December 18 and 19. Before then, representatives of the Member States and the European Parliament will consider the proposals.
Brussels hopes to use a strong mandate to make it clear to the International Monetary Fund (IMF) before the end of the year that the EU wants to borrow. This should be done either on the basis of a joint loan or on the basis of frozen assets, according to a senior EU official. The money should be available for Ukraine from the second quarter of 2026.