Complex plan would involve EU lending €90bn to Ukraine, which some fear could destabilise Eurozone. Putin says move is akin to ‘theft’
After months of debate, EU leaders will decide on Thursday whether or not to use Russia’s immobilised assets to fund Ukraine in what could be a make-or-break moment for Europe.
The EU has frozen €210bn (£184bn, $247bn) of Russian central bank assets which are mostly held at Euroclear in Brussels. As the fourth anniversary of the full-scale invasion approaches, the EU wants to use this money to generate a loan for Ukraine.
Under the complex plan, the EU would borrow from Euroclear to provide Ukraine with an initial €90bn loan, about two-thirds of Kyiv’s funding needs for 2026 and 2027. The EU expects Ukraine’s other allies to provide the rest.
Kyiv would only repay the money to the EU if and when Russia agreed to pay reparations for the colossal damage inflicted during the war. The EU would then repay Euroclear. Throughout the cycle, Russia would remain the legal owner of the assets.
