EU Proposes €90B Aid to Ukraine via Russian Assets

The European Commission unveiled proposals on Wednesday to provide Ukraine with €90 billion in funding over the next two years, drawing on either immobilized Russian central bank assets or EU-level borrowing to support Kyiv's defense efforts and public finances amid the ongoing war with Russia.

Commission President Ursula von der Leyen announced the plan during a press conference in Brussels, stating it would cover about two-thirds of Ukraine's estimated €136 billion needs for 2026 and 2027, with the remainder to come from other international partners. The initiative aims to prevent a financial shortfall projected for early next year, as Ukraine's resources dwindle into the conflict's fourth winter. EU leaders are set to discuss the proposals at a summit on December 18.

The proposals outline two main financing mechanisms. The first, favored by the Commission, involves a reparations loan secured by revenues from approximately €290 billion in frozen Russian sovereign assets held in the West, primarily in Europe. Under this approach, Ukraine would repay the loan only if Russia provides reparations for war damages. This option requires a qualified majority vote among EU member...