Von der Leyen Announced Two Financing Mechanisms for Ukraine for 2026–2027
The EC proposes borrowing against EU budget guarantees and a ‘reparations loan’ from the remaining frozen Russian assets.
The Gaze reports on it according to European truth.
The European Commission has presented two decisions that should cover Ukraine's financial needs in 2026–2027. This was announced by European Commission President Ursula von der Leyen, according to European Truth.
According to her, the first aid mechanism provides that the European Union will raise funds on external markets under the guarantee of the EU budget and transfer them to Ukraine in the form of a loan. Von der Leyen clarified that this decision requires the unanimous support of member states.
The second mechanism is the so-called ‘reparation loan.’ This refers to the remaining funds from frozen Russian assets accumulated in EU financial institutions. As the head of the European Commission noted, the EU now proposes to cover all financial institutions that have such balances. These institutions would have to transfer the funds to a special reparation loan instrument.
‘In other words, the balances of these funds are transferred to Ukraine in the form of a loan, and it will only have to repay them when Russia pays reparations,’ von der Leyen explained.
The head of the European Commission also noted that the decision could be adopted by a qualified majority vote.
The European Commission is working on a legal mechanism to address Belgium's concerns about a €140 billion ‘reparation loan’ for Ukraine, which is planned to be secured with Russian assets.
It is noted that Brussels is concerned about a possible scenario in which one of the EU member states, for example, Hungary or Slovakia, would veto sanctions against Moscow after Ukraine has been granted this loan. In this case, Belgium would have to return the money to Russia on its own.
As the Gaze reported earlier EC Makes an Offer to Win Belgian Support for Russian Asset Loan