EU reaches preliminary deal to use frozen Russian assets for Ukraine

European Union diplomats have reached a preliminary agreement to use frozen Russian assets to help finance Ukraine through a “reparations loan” in 2026–2027, but the plan still requires political approval from EU leaders meeting in Brussels on December 18-19.

According to draft conclusions of the European Council summit on December 18–19, the EU is moving closer to unlocking billions of euros in immobilised Russian assets to provide financial support for Ukraine, including its military needs, Caliber.Az reports via Ukrainian media. 

The European Council calls on the Council and the European Parliament to urgently adopt instruments establishing a “reparations loan” based on cash balances linked to Russia’s immobilised assets, the draft text says, adding that funding could begin from the second quarter of 2026.

The document notes that Russian assets held by financial institutions across the EU could be used “simultaneously and on a pro-rata basis,” and refers to the need for a coordinated approach among member states regarding their bilateral investment agreements with Russia.

Meanwhile, speaking ahead of the summit, European Commission President Ursula von der Leyen said EU leaders must reach an agreement on Ukraine’s financing for the next two years.

“We have to find a solution today. We won’t leave the European Council without a solution for the funding for Ukraine for the next two years,” she said.

Von der Leyen outlined two options under discussion: a reparations loan based on immobilised Russian assets, and joint EU borrowing backed by the bloc’s budget. While she has previously expressed support for the reparations loan, she said the priority is securing €90 billion to cover Ukraine’s needs in 2026 and 2027.

She also acknowledged concerns raised by Belgium, where a large share of the frozen Russian assets is held. 

“It is absolutely understandable that Belgium has concerns,” von der Leyen said, adding that the Commission is working closely with Belgian Prime Minister Bart De Wever.

“If we take the reparations loan, the risk has to be shared by all of us. This is a matter of solidarity and a core principle of the European Union,” she said.

By Sabina Mammadli