EU leaders expected to approve Ukraine reparation loan proposal by end of autumn – diplomat

The European Commission’s proposal for a reparation loan to Ukraine, with the main part to be financed from immobilized Russian assets, should be agreed by the leaders of the European Union by the end of autumn.

This forecast was given to journalists in Brussels on Thursday by a high-ranking European diplomat.

The diplomat said he would be happy if the leaders could agree on reparation loans at the upcoming European Council on October 23 and 24, but stressed that the issue was very complex. He recalled that this had already been evident during the debates at the last informal European Council in Copenhagen, noting that there were technical, legal, and political issues still to be resolved. He added that such matters could take time and explained that, although he would like to say the agreement could be reached at the next European Council, he would not dare to do so given the complexity of the issue.

However, the interlocutor of the journalists agreed that a solution should be found no later than the end of this year. He emphasized that the aim was to reach an agreement this autumn, mainly because the problem under consideration was how to help finance Ukraine from 2026. Therefore, he said, a solution needed to be found no later than the end of this year, that is, this autumn.

Confirming that ministers would discuss the matter at the EU Economic and Financial Affairs Council meeting in Luxembourg on Friday, the senior European diplomat explained that the ideas presented by the Commission were complex and would require national guarantees from member states. He noted that some had raised the possibility of providing guarantees through the Multiannual Financial Framework (MFF). He believed that these aspects, how to create such a solution and an instrument for loans to Ukraine through frozen Russian assets, would be at the heart of the ministers’ discussions.

He underlined that the discussions were ongoing.