The European Commission proposes to use €25 billion from the private accounts of Russian citizens for a “reparation loan” to Ukraine
The European Commission is proposing to expand the “reparation loan” for Ukraine, adding €25 billion from frozen private accounts of sanctioned Russian citizens in EU countries. The initiative would supplement the already blocked €140 billion of Russian state assets held in Euroclear. This was reported by Politico.
The European Commission sent this project to EU member states ahead of a meeting of ambassadors on October 17. The document states that the legal possibility of using additional frozen assets has not yet been studied in detail, so this issue requires further analysis before a final decision is made. In addition, the document contains the main principles of a reparations loan for Ukraine, which are planned to be considered at the EU summit in Brussels next week.
The EU leaders are expected to discuss this initiative and instruct the European Commission to prepare a corresponding bill. A discussion on it is also planned for a meeting of finance ministers in November.
The proposal provides for the creation of a system of national guarantees from EU member states. This is a key requirement of Belgium, which fears possible legal claims from Russia regarding the return of frozen assets. The guarantees will provide liquidity to meet financial obligations to Euroclear.
The document also states that from 2028 these guarantees will be included in the seven-year EU budget with a financial reserve. The loan funds are planned to be used for the development of Ukraine’s defense-technological and industrial base, integration into the European defense industry, as well as for supporting the state budget of Ukraine, subject to compliance with certain requirements.
