EU chief floats idea of reparations loan for Ukraine, based on frozen Russian assets
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European Commission president Ursula von der Leyen said the risk associated with the new financing would have to be shared collectively by EU countries.
PHOTO: REUTERS
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STRASBOURG, France – The European Union should find a new way to finance Ukraine's defence against Russia, using the cash balances associated with Russian assets frozen in Europe, said European Commission head Ursula von der Leyen on Sept 10.
She said the capital of the assets themselves would not be touched and the risk associated with the new financing would have to be shared collectively by EU countries.
“This is Russia’s war. And it is Russia that should pay. This is why we need to work urgently on a new solution to finance Ukraine’s war effort on the basis of the immobilised Russian assets,” she said.
“With the cash balances associated to these Russian assets, we can provide Ukraine with a reparations loan. The assets themselves will not be touched. And the risk will have to be carried collectively,” she told the European Parliament.
She did not give any figures.
The Group of Seven countries have already agreed on support of US$50 billion (S$64 billion) to Ukraine that will be paid back from the windfall profits generated by the roughly US$300 billion in Russian assets frozen in G-7 countries.
Dr von der Leyen did not give details on how the reparations loan would be constructed but said Ukraine would only pay it back once Russia pays for war reparations, but Kyiv would receive the money now. REUTERS
