Sweden, Finland Urge EU to Channel Frozen Russian Assets into Ukraine Aid for 2026–27

Sweden and Finland have called on the European Union to use frozen Russian assets to provide Ukraine with long-term financial support, urging leaders to back a European Commission plan for a “reparations loan” to Kyiv.

The Gaze reports this, referring to European Pravda, 

In a joint non-paper circulated ahead of Wednesday’s informal European Council summit in Copenhagen, the two Nordic governments argued that blocked Russian assets should serve as a key funding source to meet Ukraine’s pressing needs in the coming years.

According to the document, Ukraine faces an estimated €130 billion financing gap for 2026 and 2027, spanning both budgetary and military assistance. The shortfall is expected to peak in the second quarter of 2026.

“Investing in Ukraine is an investment in Europe’s overall security,” the document states, stressing that the EU and its member states should take a leading role.

Stockholm and Helsinki welcomed the Commission’s proposal to establish a reparations loan backed by seized Russian assets and described it as a mechanism that could provide “stable and predictable” financing for Kyiv’s medium-term needs.

The two governments also insisted that Russia’s frozen assets must remain blocked until Moscow ends its war of aggression and pays full reparations to Ukraine. Repayment of the loan, they emphasized, should occur only after Kyiv has received compensation from Russia.

“We urge the Commission to move swiftly with a concrete proposal, and all member states to commit decisively,” the statement reads.

As The Gaze previously reported, German Chancellor Friedrich Merz urged the EU to mobilize frozen Russian state assets to finance an unprecedented €140 billion interest-free loan for Ukraine, a move he argues would both secure Kyiv’s long-term defense and strengthen Europe’s own security architecture.