European countries have confirmed their readiness to support Ukraine’s defense industry through the SAFE mechanism, which includes a €150 billion loan program for the development of the defense sector. European Commissioner for Defense Andrius Kubilius, during the Berlin Global Dialogue forum, urged EU states to allocate part of these funds to assist Kyiv. Several countries have already expressed their willingness to use SAFE loans to finance Ukraine’s defense sector.
This is reported by Finway
Disagreements over Reparations Loan for Ukraine
Despite general support for the defense industry, EU states were unable to reach a consensus on providing Ukraine with a separate reparations loan of €140 billion. This was planned to be funded by frozen Russian assets. Belgian Prime Minister Bart De Wever opposed this initiative at the EU Council meeting, citing the risk of possible retaliatory actions from the Russian Federation, as a significant portion of the assets is located in Brussels.
“The EU is not yet ready to take the unprecedented step of using frozen Russian assets, as a lot of work needs to be done to minimize legal risks,” said former Belgian Foreign Minister Hadja Lahbib.
EU Plans for 2026-2027 and Continued Support for Ukraine
The European Commission emphasized its readiness to develop mechanisms for using frozen Russian assets and aims to meet Ukraine’s financial needs in 2026-2027. Danish Prime Minister Mette Frederiksen, who currently holds the EU presidency, expressed support for the idea of a reparations loan, hoping that a final decision will be made by December.
Since the beginning of the full-scale war, European partners have already allocated €177.5 billion to Ukraine, and work on new financing mechanisms continues. Negotiators stress the importance of legal protection when using frozen Russian assets to avoid potential legal complications.