The European Commission is preparing a €165 billion reparations loan for Ukraine, using the monetary value of Russian state assets frozen in Belgium. The loan is part of a broader financial package worth up to €210 billion and is intended to maintain Kyiv's economic stability in the coming years.
The €165 billion reparations loan includes €25 billion in frozen Russian state assets held in private bank accounts and €140 billion in Belgian Euroclear.
Ukraine would only have to repay the loan if Russia ends the war and pays reparations, which is considered unlikely.
€115 billion of the loan is intended to finance Ukraine's defense industry, €50 billion will cover Kyiv's budget needs, and the remaining €45 billion will be used to repay the G7 loan due in 2024.
The main obstacle remains the Belgian government's resistance.
