The European Council, comprising the heads of state and government of EU member states, has begun the process of drafting a legislative framework aimed at strengthening the European Commission’s financial support for Ukraine. The focus of this framework is on a reparation loan, which will serve as a critical financial instrument to sustain Ukraine’s defense and recovery efforts.
The reparation loan is proposed to be funded primarily by assets that have been immobilized from Russia, following the imposition of sanctions by the EU and other international bodies. These assets are believed to include a range of financial instruments, such as frozen bank accounts, investment assets, and other property seized due to Russia’s actions in Ukraine. The initiative aims to ensure that these assets are utilized to provide a steady flow of financial support to Ukraine, with the intention of aiding in the country’s defense and reconstruction efforts.