European Commission presents proposals for granting Ukraine a "reparations loan" using Russian reserves

On 3 December, the European Commission (EC) officially proposed to EU member states two options for financing Ukraine in the coming years: raising funds on the financial market under the guarantee of the European budget, and issuing a "reparations loan" using Russian sovereign assets frozen in the EU. The EC considers the second option to be the prime one. "We propose to create a reparations loan using cash balances from immobilised Russian assets in the EU," said EC President Ursula von der Leyen.