The EU is preparing a proposal for a 140 billion euro loan to Ukraine.

According to ТСН: The European Union is actively developing a legal proposal to unblock a loan to Ukraine totaling 140 billion euros, using income from frozen Russian assets.

The EU representative for foreign affairs and security, Kaia Kallas, noted that currently the most effective option being discussed in the Commission is a reparations loan.

“Work is ongoing. The Commission has proposed documents with options that included various approaches. But, undoubtedly, a loan for reparations is the most viable option to move forward and truly finance the needs that Ukraine has,” she stated.

She also emphasized the need for thorough legislative work to address all legal issues and potential risks. Kallas added that it is important for Belgium, the largest holder of frozen assets, to receive solidary support from other EU countries to cover financial risks.

“Yes, this process is ongoing, and I hope the proposal will be sent to member states very soon. At the European Council in December, we promised to discuss how to finance Ukraine until we have a final decision,” Kaia Kallas concluded.

Earlier, she also emphasized that the situation with the 'American peace plan', to which the Kremlin was reportedly involved in its development, indicates the need to remain vigilant regarding Russia and avoid its traps.

In addition, Brussels stated its readiness to not support providing Ukraine with a 140 billion euro loan if legal guarantees and a clear mechanism for distributing financial risks among all EU countries are not obtained.

This loan could provide substantial financial support for Ukraine in the current challenges. If implemented, the funds could be directed towards restoring infrastructure and the economy, significantly alleviating the consequences of the war. However, to successfully execute this plan, it is necessary to find mutual understanding among EU countries and resolve all legal aspects.