The EU may provide Ukraine with a reparations loan: what is known about the amount and conditions.

According to ТСН: Ukraine hopes to receive a 'reparations loan' from the EU using frozen Russian assets. If difficulties arise with this loan, Kyiv will consider other financing options for the same amount.

How the 'reparations loan' will be distributed

The loan amount may range from 150 to 200 billion dollars, but in total - up to 210 billion. President of Ukraine Volodymyr Zelensky emphasized that any funding format is critical for the state.

'This is a financial guarantee of security for Ukraine. It is part of our guarantees, like Article 5 of NATO, like a weapon,' Zelensky stressed.

Currently, there are two options for using these funds:

• Plan A - in case the war ends, the funds will be directed towards the reconstruction of the country and ensuring macro-financial stability.

• Plan B - if aggression continues. In this case, at least 40-45 billion euros will be needed annually for defense, army support, air defense, and weapons.

Zelensky highlighted how important these financial inflows are for the stability and recovery of Ukraine. He also noted that discussions with European Commission President Ursula von der Leyen are underway about complex financing alternatives, as Ukraine faces a budget deficit without these funds.

It is worth noting that European leaders reached a political decision regarding Ukraine's financing for 2026-2027, but did not confirm the loan from Russian assets due to Belgium's objections.

How the EU plans to support Ukraine

The European Union emphasizes the importance of financial support for Ukraine. Ursula von der Leyen stated that Europe is ready to cover two-thirds of Kyiv's needs for the next two years, providing 90 billion euros.

'We are committed to rebuilding and the future prosperity of Ukraine. Europe will remain Ukraine's strongest and most reliable partner,' von der Leyen noted.

It is also expected that the issue of assistance to Ukraine will be a priority at the upcoming European Council meeting.

At the Euro Council meeting on December 17-18, EU countries plan to discuss the possibility of providing a 'reparations loan' to Ukraine based on frozen Russian billions. Most bloc members support this initiative, but Belgium, Hungary, and Slovakia oppose it. At the same time, Italy, Malta, and Bulgaria offer alternative financing options.

Options for financial support

The EU is exploring possible options for financial support for Ukraine. The main proposals include a 'reparations loan' based on frozen Russian assets and a system of European loans under which EU countries will raise funds to finance Ukraine over the next two years.

The idea of a 'transit loan' is also being considered, which is planned to be financed through EU loans to provide financial support to Ukraine in the initial months of 2026. This will allow for preparation for the implementation of the full 'reparations loan' using Russian assets.

What preceded

Earlier, there were disputes over frozen Russian assets, as Belgium, where most of the blocked funds are stored, rejected the European Commission's proposal, which did not receive support from the European Central Bank either.

President Zelensky emphasized the importance of funding that can be obtained from frozen Russian assets, as without these funds, it will be difficult for Ukraine to function.