AP: Frozen Russian Assets Will Remain Blocked Until Moscow Pays War Reparations

• 19.12.2025, 14:24

Negotiations on Ukraine's financing continued late into the night.

The leaders of the European Union have agreed to provide Ukraine with a large interest-free loan of €90 billion to cover its military and budgetary needs in 2026-2027. However, the plan to finance the aid at the expense of frozen Russian assets in Europe could not be realized due to disagreements with Belgium, writes Assoviated Press (translated by Charter97.org).

The International Monetary Fund estimates that Ukraine will need about €137 billion in the next two years. Kiev will need the funds by spring. Initially, the EU considered using some of the €210 billion of Russian assets frozen in Europe, most of which are held at the Belgian depository Euroclear.

Negotiations on the matter continued late into the night, but Belgian Prime Minister Bart de Wever called the scheme legally risky and warned of possible consequences for Euroclear's financial stability and business. EU leaders eventually decided to raise the funds on financial markets.

The loan was opposed by Hungary, Slovakia and the Czech Republic, but they agreed not to block the decision in exchange for guarantees of protection against possible financial repercussions. Hungarian Prime Minister Viktor Orban said giving money to Ukraine meant "moving toward war."

French President Emmanuel Macron called the agreement "realistic and practical," while German Chancellor Friedrich Merz emphasized that the loan would be zero interest and cover Ukraine's needs for two years. He added that frozen Russian assets would remain blocked until Moscow pays war reparations.

Ukrainian President Vladimir Zelensky urged the EU to make an urgent decision, warning of the risk of financial collapse. Brussels emphasized that the EU reserves the right to use frozen Russian assets to repay the loan in the future.