The President of the European Commission, Ursula von der LeyenHe told the European Parliament on Thursday that the European Union had three possible ways to finance Ukraine's financial needs, but that the most effective would be to use Russian frozen assets to guarantee a loan to Kyiv.
Von der Leyen explained that member states could either use the remaining leeway in the European budget to raise funds or decide to collectively finance Ukraine through an intergovernmental agreement. However, she argued that the most effective solution would be to grant Ukraine a reparations loan backed by the billions of euros in Russian assets frozen since the beginning of the war.
In this scenario, Ukraine would receive the funds immediately, and would only be required to repay if Russia ever paid reparations for the damage caused by its invasion.
Ursula von der Leyen stressed the effectiveness of this approach, which she considers essential to support both Ukrainian defense and the stability of its economy, as the costs of the conflict increase and Western funding must be secured in the long term.
