The European Commission and the International Monetary Fund estimate the need for funding Ukraine for 2026–2027 at 137 billion euros. Of this amount, two-thirds is to be provided by the European Union. However, as European Commission President Ursula von der Leyen emphasized during her speech in the European Parliament in Strasbourg, this is not just about numbers, but also about Ukraine’s ability to guarantee real peace.
This is reported by Kyiv24
Key Debates on Funding Sources
Ursula von der Leyen highlighted that providing financial support to Ukraine is a fundamental step in European defense. According to her, the coming days will be crucial for ensuring this support, as the issue of financing Ukraine’s struggle is urgent. At the same time, as peace negotiations continue, the intensity of attacks from Russia is also increasing.
“There is no more important act of European defense than supporting Ukraine’s defense. The coming days will be a decisive step in ensuring it. It is up to us how to finance Ukraine’s struggle. We know the urgency: it is acute… Just as peace negotiations are intensifying, so is the barrage of Russian attacks,” von der Leyen stated.
The head of the European Commission reminded of two possible funding paths: the use of frozen assets of the Russian Federation, which Belgium currently opposes, and the option of joint EU borrowing, which requires unanimous approval from all 27 member states, making it less likely.
Discussions on Frozen Assets and Reparations Loan
Von der Leyen stated that providing Ukraine with a reparations loan is a priority option, and the recent EU decision to keep Russian assets frozen indefinitely sends a strong political signal. According to her, these assets will remain inaccessible until Russia ends the war and compensates Ukraine for the damages caused.
In Europe, there has been active discussion in recent weeks about the possibility of providing Kyiv with a “reparations loan” of 140 billion euros secured by Russian assets. However, Belgium, where most of these funds are located, is categorically opposed to such a decision due to the risks of legal claims from the Russian Federation.
The head of the Brussels clearing house Euroclear, Valérie Urban, stated that the European Commission’s plan for the forced seizure of frozen Russian assets is unrealistic in its current form, and the depository is prepared to go to court to protect against potential bankruptcy in response to Moscow’s actions.
Belgian Deputy Prime Minister Vincent Van Peteghem noted that the use of frozen Russian assets for Ukraine’s interests is inevitable, but Belgium will not make hasty compromises and will demand clear guarantees before entering into any agreement. At the same time, the European Central Bank is not ready to insure such a “reparations loan.”
Russia categorically rejects all attempts to confiscate its funds and calls the potential use of assets for Ukraine’s benefit theft.