Ukraine demands autonomy for reparations loan: what the funds will be used for

Ukraine insists on full autonomy in the management of the 'reparations loan', which will be formed from frozen Russian assets. This was stated by the Deputy Head of the President's Office Iryna Mudra in a comment to Reuters.

According to her, the Ukrainian side expects to gain access to the loan by the end of the current year, which will allow it to form a predictable budget for 2026. The key requirement remains the right to independently determine spending priorities.

'Ukraine's position is that any conditions undermine the principle of justice. Therefore, it is the victim, not donors or partners, that should determine how to meet its most urgent needs in defense, recovery, and compensation,' highlighted Mudra.

Priority areas of fund allocation

Among the priority areas for fund allocation are the procurement of weapons, including from non-European manufacturers. 'We will insist on autonomy in decision-making regarding the allocation of resources between defense needs. If there are insufficient defense capabilities in European countries, then we must have the opportunity to buy them from non-European countries,' noted the representative of the President's Office.

Part of the loan is planned to be directed towards the restoration of critical energy infrastructure and compensation for those affected by Russian aggression. The European Council will announce plans to provide financial and military support to Ukraine during 2026-2027 using the profits from frozen Russian assets at its meeting on October 23. Meanwhile, the European Commission's proposal to allocate 140 billion euros has not yet found support in Belgium, where these assets are physically located.

Ukraine insists on full autonomy in managing the 'reparations loan' from Russian assets, planning to use these funds for the procurement of weapons, restoration of energy infrastructure, and compensation for those affected by Russian aggression. While insisting on the right to independently determine priorities, Ukraine expects access to these funds by the end of the current year.