In a letter to Presidents of the European Commission, Ursula von der Leyen, and the European Council, António Costa, dated Sunday 7 December, seven Member States - Estonia, Finland, Ireland, Latvia, Lithuania, Poland and Sweden - believe that the ‘Reparations Loan’ to Ukraine, which would tap into the €210 billion of Bank of Russia assets tied up in the European Union, is the “most financially feasible and politically realistic” option.
Given the urgency of the situation and the scale of the needs, we “strongly” support the Commission’s proposal for a ‘Reparations Loan’ to be financed by the cash balances arising from Russia’s frozen assets (see EUROPE 13765/1), write the seven leaders. Such a solution confirms Ukraine’s fundamental right to obtain “compensation for the damage caused” by Russia’s military aggression, they add.
See the letter from the seven countries: https://aeur.eu/f/jwb
The heads of government stressed the importance of reaching a solution at the European Council on 18 and 19 December. In the meantime, it will be necessary to convince Belgium, which hosts the majority of Russia’s frozen assets.
On Friday, the Belgian Prime Minister, Bart De Wever, dined with Mrs von der Leyen and the German Chancellor, Friedrich Merz, who is heavily involved in this issue (see EUROPE 13767/18).
Referring to a constructive discussion, Mrs von der Leyen and Mr Merz acknowledged that “Belgium’s particular situation regarding the use of the frozen Russian assets [was] undeniable and [should] be taken into account in any possible solution, so that all European states bear the same risk”, in separate statements.
On Monday, Mrs von der Leyen acknowledged that the financial package linked to the ‘Reparations Loan’ was “complex”, but, she stressed that this loan, which Ukraine would only repay after Moscow had paid war reparations, “increases the cost of the war for Russia”.
At a remote meeting on Monday, the G7 finance ministers also reaffirmed their “unwavering” support for Ukraine. Welcoming the IMF’s agreement to continue financial assistance to Kyiv, which puts Ukraine’s needs at €135 billion for 2026 and 2027, they agreed to “work together to develop a wide range of financing options”, including the ‘Reparations Loan’. (Original version in French by Mathieu Bion)