The EU plans to provide Ukraine with a loan of 130 billion euros: sources reveal the details.

According to inkorr.com: The European Union is actively considering the possibility of providing Ukraine with a 'reparations loan' of up to 130 billion euros. According to EU officials, the final loan amount will be determined after assessing Ukraine's financial needs for 2026-2027, which will be conducted by the International Monetary Fund.

Concept of the reparations loan for Ukraine

European Commission President Ursula von der Leyen proposed the idea of a reparations loan for Ukraine, with funds obtained from frozen Russian assets seized after the invasion of Ukraine in 2022.

“The loan, intended to support Kyiv in funding military efforts, will be issued to Ukraine only after receiving reparations in a peace agreement with Russia. The risk will be borne collectively by Europe, as well as possibly other G7 countries.”

EU's Future Plans

Before providing the reparations loan, the EU intends to repay the G7 loan of 45 billion euros (50 billion dollars) made last year. This will free up about 130 billion euros for the new fund, sources close to the negotiations report.

EU's Attempts to Stop Oil Imports from Russia

The European Union is trying to end oil imports from Russia to Hungary and Slovakia by imposing tariffs. European Commission President Ursula von der Leyen noted that the EU aims to phase out Russian energy resources by the end of this year, responding to calls from US President Donald Trump.

Currently, the EU is looking for ways to circumvent Hungary and Slovakia's veto on Russian oil imports using trade measures, most of which could be implemented by the European Commission if Budapest and Bratislava do not present plans for gradually reducing dependence on Russia.

Thus, Ukraine may be granted a 'reparations loan' of up to 130 billion euros to finance military efforts. However, this will only be possible after a successful peace agreement with Russia and the reduction of the EU's dependence on Russian oil.