Von der Leyen: EU to fund Ukraine with frozen Russian assets, not confiscate

The European Commission (EC) does not intend to confiscate Russian assets frozen in the West but plans to use them to provide loans to Ukraine in the form of “reparations,” TASS reports.

Commission President Ursula von der Leyen made the remarks during her annual State of the European Union address at the European Parliament in Strasbourg.

She said EU countries need to urgently work on a new decision to finance Ukraine’s military response using frozen Russian assets.

“Using funds tied to these Russian assets, we can issue Ukraine a reparations-based loan. The assets themselves will not be confiscated, and the risks will need to be assumed,” von der Leyen said.

“Ukraine will only repay the loan once Russia pays reparations. These funds will help Ukraine now, but they are also critically important in the medium and long term,” she added.

By Khagan Isayev