EU: Ukraine Loan Repayment Depends on Russian Reparations

By Staff, Agencies

European Commission President Ursula von der Leyen said on Friday that Ukraine will not be required to repay the newly approved €90 billion [$105.5 billion] European Union loan unless Russia pays war reparations.

Her remarks followed the EU’s approval of a major financial assistance package for Ukraine covering the years 2026 and 2027. European Council President Antonio Costa announced the decision on Friday, confirming that EU leaders had agreed to provide €90 billion in support over the two-year period.

“We have a deal. The decision to provide 90 billion euros of support to Ukraine for 2026–27 has been approved. We committed, we delivered,” Costa wrote on the X platform.

Costa explained that the loan includes a conditional repayment clause, stating that Ukraine would only be required to repay the funds if Russia pays reparations for the war. He added that the EU has reserved the option to use immobilized Russian assets to recover the money and has tasked the European Commission with continuing work on a reparations mechanism linked to those assets.

Von der Leyen reiterated this position in comments to reporters, emphasizing that Ukraine’s repayment obligation is directly tied to Russia compensating for war damages. “If Russia does not pay reparations, Ukraine does not have to repay the loans,” she said.

She noted that the funding framework was adjusted following discussions about financial and legal risks, resulting in a structure that makes repayment contingent on the EU’s ability to extract compensation from Russia.

Since the outbreak of the war in Ukraine in 2022, the EU and G7 countries have frozen an estimated €300 billion in Russian foreign currency reserves. Around €200 billion of those assets are reportedly held within European financial institutions, particularly at the Euroclear clearinghouse.

Russia has repeatedly warned that seizing or redirecting its sovereign assets would amount to theft and a serious violation of international law, and has said such actions would provoke a response.