Will Europe use Russian assets to fund Ukraine? Could Moscow hit back?

"European Union leaders are considering a reparations plan that would use frozen Russian state assets to provide Ukraine with a $164bn loan to help fund its reconstruction after the war with Russia ends. Leaders expressed a mixture of support and caution for the plan on Wednesday as they met in the Danish capital, Copenhagen, days after drones were spotted in Denmark's airspace, prompting airport closures."

"During his 2024 presidential campaign, US President Donald Trump promised voters he would pull the US back from providing high levels of financial and military aid to Ukraine. Since the beginning of his term in January, Trump has made it clear the US will take a back seat in terms of providing financial support and security guarantees to Ukraine, indicating Europe should fill the gap instead."

"The reparations plan was first outlined by European Commission President Ursula von der Leyen in mid-September, and backing for it has grown as United States financial support for Ukraine wanes. Europe's plan would use Russian assets frozen in European banks as collateral for a 140-billion-euro ($164.4bn) loan to Ukraine. Repayments for the loan would be recouped via war reparations from Russia, but the loan would also be guaranteed either in the EU's next long-term budget or by individual EU memb"

European Union leaders are considering a reparations plan that would use Russian state assets frozen in European banks as collateral for a 140-billion-euro ($164.4bn) loan to Ukraine to fund postwar reconstruction. Repayments would be recouped via war reparations from Russia, while the loan would be guaranteed by the EU's next long-term budget or by individual member states. Support for the plan has increased as United States financial backing wanes following policy shifts under President Trump. Several EU leaders publicly support the idea, while some countries warn of potential legal complications. Drones spotted in Danish airspace and accusations of incursions raise regional security concerns.

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