13:41 17-10-2025

EU May Lend Ukraine €25 Billion Using Frozen Russian Assets

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The European Commission is exploring a €25 billion loan to Ukraine using frozen Russian assets, expanding the existing reparations credit mechanism, Politico reports.

The European Commission is weighing the possibility of granting Ukraine an additional €25 billion loan financed through frozen Russian assets, Politico reported.

According to the publication, EU member states have received an internal Commission document suggesting the expansion of the so-called «reparations credit» mechanism to include other Russian funds currently blocked within the European Union.

Earlier, EU countries had planned to fund Kyiv through about €140 billion in frozen Russian assets held under European control. However, Brussels is now exploring the option of tapping into additional resources stored in private banks, where roughly another €25 billion of Russian money is believed to be located.

The document noted that the legal feasibility of extending the «reparations credit» to such privately held assets has not yet been thoroughly examined. The Commission emphasized the need for a detailed legal review before making any decisions on next steps.

In addition, the European Commission proposed creating a system of national guarantees that would allow EU countries to release funds more swiftly, bypassing lengthy approval procedures.