EU preparing EUR 90B reparations loan for Ukraine, two thirds for military support

According to an Ukrinform correspondent, this was stated at a briefing at the Elysee Palace on Tuesday, ahead of the European Council meeting in Brussels.

Two thirds of the funds are to be allocated to military support, with an emphasis on integrating the European and Ukrainian defense industries.

"At this stage, our priority, based on Russian assets that we have recently frozen for a longer period, is to work on an amount of EUR 90 billion for 2026-2027, before moving from January 1, 2028 to more regular financing, which is more customary within the framework of the next EU budget and the next financial framework," the Elysee Palace said.

Discussions on the guarantees to be provided to Belgium are progressing, but "these guarantees must apply to all states in order to be acceptable."

According to the French president's office, the European Commission's priority concerns assets held in the central securities depositories Euroclear, rather than Russia's sovereign assets in commercial banks.

"This makes it possible to work on guarantees that are targeted and specific to central securities depositories, without adding another layer of legal complexity. Today, a mechanism for providing loans backed by sovereign assets held in commercial banks would involve lending under existing contracts that require additional guarantees in case of litigation risks or systemic risks," the Elysee Palace explained.

The funds planned for Ukraine are intended primarily for military support.

"The Commission noted during the debates that two thirds [of the amount] should go to military support and one third to civilian support. Therefore, this reparations loan will have a substantial military component. The work we are currently doing is aimed, on the one hand, at ensuring full financial transparency in the civilian sphere, with reforms that are also necessary on Ukraine's European path, and, on the other hand, in the military sphere, we insist on clear conditions of European preference. The one that would promote the integration of the Ukrainian and European defense industrial bases," an Elysee Palace representative said.