Overview

• The Commission sent member states a note outlining a roughly €140 billion loan and ambassadors began preparations ahead of EU leaders’ talks in Copenhagen on October 1.
• Under the design, matured cash from immobilised Russian assets at Euroclear would move to an SPV while Euroclear receives EU‑guaranteed zero‑coupon bonds, and Ukraine would repay only after Russia pays reparations.
• Officials say the EU would first repay the earlier €45 billion G7 loan from the cash pool, leaving about €130 billion available for the new instrument.
• Germany has shifted course as Chancellor Friedrich Merz backs an interest‑free loan—preferably for defense procurement—while the ECB and Euroclear flag legal exposure and market‑stability risks.
• The final size will follow an IMF needs review for 2026–2027, participation could proceed without Hungary and Slovakia if they opt out, and Brussels floated moving sanctions rollovers to qualified‑majority voting to curb veto risks.