A European Union head of diplomacy Kaja Kallas arrived in Kiev this morning to discuss “financial and military support” for Ukraine. The visit focuses, in particular, on the proposal for a reparations loan that Europe is preparing based on frozen Russian assets.
Kallas highlighted on social media that “Ukrainians inspire the world with their courage” and reiterated the need to support the country’s resilience, when addressing topics such as the security of the energy sector and holding Russia accountable for its war crimes.
This visit comes at a critical time, with Ukraine entering a severe winter, worsened by the destruction of energy infrastructure due to Russian attacks.
A European Commission is finalizing a proposal for a reparations loan based on Russian fixed assets in the European Unionwith the aim of supporting Ukraine’s financial needs over the next two years.
O plan foresees a total amount of 140 billion euroswhich would be made available in conditioned tranches. This financial support aims to help Ukraine finance its defense industry and cover budgetary expenses, with the expectation that the mechanism will be operational by April 2026.
At the moment, around 210 billion euros in Russian assets are frozen in the EUmainly in Belgium, where Euroclear, one of the largest financial institutions in the world, is located. However, the proposal raises legal concerns about the possibility of it being interpreted as an expropriation, in addition to raising questions about the stability of the euro.