EU proposes using Russian assets, loans to fund $105bn package to Ukraine

"But Belgium, a vocal critic of the plan to use Russian assets to back Ukraine, says its concerns have not been resolved. The European Commission has proposed an unprecedented use of frozen Russian assets or international borrowing to raise 90 billion euros ($105bn) to support Ukraine's war effort against Russia, though critical reservations about the plan from key stakeholder Belgium appear unresolved. The announcement by the European Union's executive body on Wednesday proposed two solutions to address Ukraine's financing needs for 2026 and 2027."

"Commission President Ursula von der Leyen told reporters that the proposals will ensure Ukraine has the means to defend itself, and take forward peace negotiations from a position of strength. We are proposing to cover two-thirds of Ukraine's financing needs for the next two years. That's 90 billion euros. The remainder would be for international partners to cover, she said."

The European Commission proposed using frozen Russian state assets or international borrowing to raise €90 billion to support Ukraine's 2026–2027 financing needs. Two options were proposed: an EU loan from private markets, or a reparations loan funded with Russian state assets frozen in the EU. Belgium has unresolved reservations, with Euroclear the main holder of frozen assets. The Commission said the plan would cover two-thirds of Ukraine's financing needs for the next two years, leaving the remainder to international partners. The proposal frames funding as supporting Ukraine's defense, state functions, European security, and as increasing the cost of Russia's aggression to encourage negotiations.

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