In the European Union, discussions have intensified regarding the use of approximately €140 billion in frozen Russian assets to support Ukraine in its war against the Russian Federation. One of the main priorities is to enable Kyiv to procure weapons.
This is reported by Finway
Plans for a “Reparations Loan” for Ukraine
European leaders are increasingly supporting the idea of allocating a so-called “reparations loan” to Ukraine at zero percent interest. Funds from this loan are to be directed exclusively towards purchasing weapons from EU manufacturers. In particular, the initiative by German Chancellor Friedrich Merz for mandatory procurement of weapons made in Europe has gained broad support among EU countries. To reach a compromise with France, the European Commission has promised that part of the loan will be spent on “purchases in Europe and with Europe.”
The Position of Scandinavian Countries and the US Initiative
Sweden and Finland emphasize the need to begin preparations for the distribution of frozen Russian assets as soon as possible. In their view, delays will lead to strategic losses, and the lack of sustainable funding could make Ukrainian military and civilian institutions vulnerable to disruptions.
At the same time, a resolution has been proposed in the US Senate calling on G7 countries and the European Union not only to confiscate Russian assets but also to transfer $10 billion per month to Ukraine from these funds.
“Action should be taken immediately,” as delays will incur strategic costs. Furthermore, without a predictable flow of funding, Ukraine’s military and civilian institutions risk becoming vulnerable to disruptions.
In response, official Moscow has labeled such plans regarding the use of frozen Russian assets as “illegal” and threatened “responsibility” for such actions.