EU invites Russia to negotiating table, unveils major financing plan for Ukraine

European Commission President Ursula von der Leyen has extended a direct invitation to Russia to return to the negotiating table, as the Commission unveiled a sweeping proposal to cover two-thirds of Ukraine’s financing needs for 2026–2027. 

“Ukraine really stands at a critical juncture. The negotiations towards peace are ongoing,” von der Leyen said, warning that Russia’s escalating strikes are increasing Ukraine’s civilian and military needs, Caliber.Az reports.

She noted that the IMF estimates Ukraine will require €135 billion over the next two years to keep the state functioning and sustain its defence capabilities. “As from the beginning, Ukraine can rely on the fact that Europe will remain the strongest and most steadfast partner,” she affirmed.

Von der Leyen stressed that while Europe cannot match the sacrifice of Ukrainians, it can “match their stamina, their resolve, their staying power,” and give Kyiv the means to defend itself and negotiate peace “from a position of strength.” She added that “pressure is the only language the Kremlin responds to,” arguing that increasing the cost of war for Russia is essential.

To that end, the Commission is proposing to cover €90 billion of Ukraine’s projected needs through two financing mechanisms. The first is EU borrowing, backed by the EU budget and requiring unanimous approval by member states. The second is a Reparations Loan, which would use cash balances from immobilised Russian central bank assets held in the EU. These funds would be transferred into a loan instrument and provided to Ukraine, to be repaid only “if and when Russia is paying reparations.” This mechanism can be approved by qualified majority voting.

The funds would provide both budgetary support—through existing tools such as macro-financial assistance and the Ukraine Facility—and military assistance, aimed at boosting Ukraine’s defence industry and integrating it into Europe’s defence industrial base. Purchases would prioritise Ukraine, the EU, and EEA/EFTA countries, with third-country procurement allowed only for urgent needs.

Von der Leyen highlighted “very strong safeguards” to protect member states and institutions from retaliatory or unlawful actions, noting that concerns raised by Belgium—home to Euroclear—had been “almost all” addressed, including through a “very strong solidarity mechanism.”

Concluding, she delivered a dual message: reassurance to Kyiv and a direct signal to Moscow. “Today we are sending a very strong signal to the Ukrainian people that we are in for the long haul,” she said. And to Russia: “The Reparations Loan is increasing the cost of its war of aggression. So it's an invitation to come to the negotiation table to finally find peace.”

By Vafa Guliyeva