The European Commission is developing two additional mechanisms to cover Ukraine’s financial deficit: the possibility of raising joint debt from the European Union and utilizing grants from member states. Both instruments are being discussed as alternatives and complements to the previously proposed “reparations loan.”
This is reported by Kyiv24
Alternative Support Scenarios
The main element of the previous initiative remained a $140 billion loan secured by frozen assets of the Russian Federation. However, during the October EU summit, this scheme faced resistance from Belgium, joined by Germany and the Baltic states. This prompted the European Commission to consider additional support options.
Preparation for Discussion at the EU Level
The idea of joint borrowing does not involve drawing resources from the EU’s long-term budget, as the amount of funds available is insufficient. The European Commission is preparing a special document that will outline all possible financial mechanisms. This document is expected to be sent to the capitals of member states in the coming weeks for further discussion.
Key issues regarding further funding for Ukraine will be brought to the agenda of the European Union summit, scheduled to take place on December 18-19 in Brussels.
“The International Monetary Fund estimates Ukraine’s budget deficit for 2026-2027 at 55 billion euros. The European Commission is basing its calculations on these figures.”