“To strengthen Ukraine’s financial resilience in the face of Russia’s ongoing war of aggression, the European Commission today proposes two solutions aimed at meeting Ukraine’s financing needs for 2026-2027: an EU loan and a reparations loan,” the Commission announced in a specially issued statement. The proposals are based on the options presented by President von der Leyen on 17 November 2025, following the European Council’s call for the Commission to put forward options for financial support to Ukraine and after further discussions with member states.
“These two solutions are grounded in a comprehensive set of five legal proposals. Since Russia continues to show no sign of willingness to commit to a just and lasting peace, the strain on Ukraine’s resources keeps growing, making sustained EU support all the more important,”
the Commission wrote in the statement.
“The foundation of these two solutions is a comprehensive set of five legal proposals. Since Russia continues to show no sign of willingness to engage in efforts toward a just and lasting peace, the strain on Ukraine’s resources keeps increasing, which makes sustained EU support all the more important,”
the Commission wrote.
The Commission is proposing two possible solutions: an EU loan, which would rely on the EU budget (the “main ledger”), and a reparations loan, which would authorize the Commission to borrow cash balances from EU financial institutions holding immobilized assets of the Russian Central Bank.
“They reflect the EU’s commitment to supporting Ukraine not only in defending its sovereignty and maintaining state functions, but also as a strategic investment in Europe’s security and in the pursuit of a just and lasting peace. These proposals introduce a series of safeguards intended to protect member states and financial institutions from possible retaliatory measures in Russia and from unlawful expropriations outside Russia, particularly in jurisdictions friendly to Russia. To cover any residual risk, the package includes a strong solidarity mechanism backed by bilateral national guarantees or by the EU budget. Although these proposals are fully in line with European and international law, they also preserve the integrity of the Union’s financial market and the status of the euro as a global currency,”
the statement emphasized.