The European Union is actively discussing the possibility of providing Ukraine with a 'reparations loan' of up to 130 billion euros. According to information from EU officials, the final amount of the loan will be determined after the International Monetary Fund assesses Ukraine's financing needs for 2026-2027.
Idea of the reparations loan for Ukraine
Ursula von der Leyen, President of the European Commission, put forward the idea of a reparations loan for Ukraine, which is based on the funds frozen from Russian assets after Russia's invasion of Ukraine in 2022.
'The loan intended to support Kyiv in financing military efforts will be issued to Ukraine only after receiving reparations in a peace agreement with Russia. The risk will be borne collectively by Europe as well as possibly other G7 countries.'
EU actions for the future
Prior to providing the reparations loan, the EU plans to repay the G7 loan of 45 billion euros (50 billion dollars) entered into last year. This will leave about 130 billion euros in cash available for the new fund, sources close to the negotiations reported.
EU attempts to end oil imports from Russia
It is worth noting that the European Union plans to stop importing Russian oil to Hungary and Slovakia by imposing tariffs. European Commission President Ursula von der Leyen stated that the EU is working on phasing out Russian energy supplies by the end of this year, responding to calls from U.S. President Donald Trump.
Currently, the EU is developing ways to circumvent Hungary's and Slovakia's veto on Russian oil, introducing trade measures, the majority of which are passed by the European Commission, as a possible course of action if Budapest and Bratislava do not present plans to gradually eliminate dependency on Russia.
Ukraine may receive a 'reparations loan' of up to 130 billion euros as a way to help the country finance its military efforts. This will be possible after receiving reparations from Russia and freeing the EU from dependency on Russian oil.