Europe is preparing a “repatriation loan” for Ukraine: its size could reach 130 billion euros
FILE PHOTO: A banner depicting an European Union flag is reflected in a window outside the EU Council headquarters in Brussels, Belgium March 18, 2025. REUTERS/Yves Herman//File Photo
The European Union is preparing to provide Ukraine with a “repatriation loan,” the amount of which could reach 130 billion euros.
This was reported by Reuters, citing sources.
As noted, the final loan amount will be determined after the International Monetary Fund assesses Ukraine’s financing needs in 2026 and 2027.
The idea of a “repatriation loan” was proposed by European Commission President Ursula von der Leyen. Its essence is to finance Ukraine’s war efforts with the proceeds from frozen Russian assets. At the same time, Kyiv would have to repay the loan only after receiving reparations from Russia under a peace agreement.
Currently, most of the approximately 210 billion euros in Russian assets are held in the Belgian central securities depository Euroclear.
As officials explained, of these, 175 billion euros of assets have already reached maturity and become cash that can become the basis for new credit.
However, before transferring funds for reparations, the European Union seeks to repay 45 billion euros of the G7 loan.
This would leave the EU with about 130 billion euros available to spend on Ukraine’s war efforts.
Earlier, the European Commission came up with a new way to transfer billions of euros in frozen Russian assets to Ukraine . In particular, Europe proposes replacing the money with EU-backed debt obligations.
It has been reported that the European Commission is working on creating a special fund that could attract almost 200 billion euros in frozen Russian assets . These funds are planned to be used to support the post-war reconstruction of Ukraine.
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