The EU will provide Ukraine with 140 billion euros: the loan will be financed by frozen Russian assets.

According to inkorr.com: The European Union plans to introduce a special lending scheme for Ukraine, which will be financed through frozen Russian assets. The loan of 140 billion euros is intended to cover defense and budgetary needs, and its repayment will only occur after reparations are received from Russia. This is reported by

"Radio Free Europe"

How much Russian money is in Brussels

According to available data, about 176 billion euros, originating from Russian Central Bank bonds and frozen in the Belgian depository Euroclear due to EU sanctions, will be directed to finance the loan to Ukraine. This loan will be structured as a debt contract with Euroclear at 0% interest.

"Such a structure ensures that the reparations loan will be considered by the IMF as a conditional liability and will not be counted towards Ukraine's total debt"

The repayment of the loan will depend on the reparations that Russia will pay to Ukraine after the war ends.

Key elements of the reparations loan scheme for Ukraine

• Loan amount: 140 billion euros after payments for other obligations.
• Payment format: tranches under agreed conditions.
• Use: defense cooperation and budgetary needs.
• Asset protection: Russia's sovereign funds will return after sanctions are lifted.
• Risks: guarantees from EU countries will cover potential losses.

This operation does not affect Russia's sovereign assets, which can be returned after sanctions are lifted, if Russia decides to end the war and compensate for the damages inflicted.

"The reparations that Russia will provide to Ukraine will be used to repay the loan from the EU, which the European Union will return to Euroclear"

The initiative to introduce this lending program was presented by European Commission President Ursula von der Leyen on September 10, emphasizing that the risks will fall on Europe and possibly on G7 countries.

This move by the EU reflects an intention to maintain internal stability and ensure support for Ukraine during a difficult time. The lending program will be especially important for covering urgent defense and social spending needs, as the country continues to grapple with the consequences of war and its impact on the economy.