Overview

• EU governments aim to reach political consensus at a Brussels summit next week on opening an asset-backed reparations loan for Ukraine, with the Commission poised to draft the legal mechanism by the second quarter of 2026 if agreed.
• The proposal under discussion would provide about €140 billion in new financing, with repayment starting only if Russia pays post-war reparations.
• Momentum has increased after an October 10 joint statement by the UK, France and Germany supporting the move to use frozen Russian sovereign assets for Ukraine.
• EU foreign policy chief Kaja Kallas said Ukraine should decide how to use any funds, while member states debate military versus economic priorities and coordinate with G7 partners as income from the assets continues to flow.
• Roughly €300 billion in Russian state assets are immobilized worldwide, including about €210 billion in the EU and over £27 billion in the UK, as Moscow threatens retaliation and civil groups urge earmarking a portion for victim reparations.