The European Commission proposes to expand the “reparation loan” to Ukraine

The European Commission is studying the possibility of expanding the sources of financing for the so-called “reparation loan” for Ukraine – in addition to the assets of the Russian Central Bank held in Euroclear, private funds of sanctioned Russians placed in European banks may also be involved.

This is reported by Politico with reference to the document.

This involves the potential use of an additional €25 billion held in accounts of individuals on the sanctions list in various EU countries. This would complement the already mentioned €140 billion frozen in the Belgian financial depository Euroclear.

An internal document, which, according to Politico, the European Commission sent to member states ahead of the ambassadors’ meeting on October 17, states:

“It is advisable to consider the possibility of extending the reparation loan mechanism to other frozen assets in the EU.”

At the same time, it is emphasized that the legal aspects of this issue have not yet been studied in depth – and this must be done before any decisions are made.

The document also outlines the basic principles for creating a financial instrument to provide Ukraine with a reparation loan, which are planned to be discussed during the EU summit in Brussels next week.

It is expected that at the summit, the leaders of the European Union countries will instruct the European Commission to prepare a formal legislative proposal.

Recall that the European Union is preparing to provide Ukraine with a “reparation loan”, the amount of which could reach 130 billion euros.

As reported, Ukraine is forming a mechanism for submitting claims to an international registry of damages and a compensation commission to determine the total amount of damage caused by Russian aggression. The process is based on individual applications from citizens and companies that have suffered from Russia’s actions.

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