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EU Moves to Fast-Track €140 Billion Ukraine Loan Using Frozen Russian Assets

Belgium’s demand for EU-wide guarantees keeps approval uncertain, prompting work on a fallback bridge loan.

Overview

  • European Commission President Ursula von der Leyen told lawmakers the Commission is ready to present a legal text to operationalize a loan for 2026–27 backed by immobilized Russian sovereign assets.
  • Belgium, where roughly €185 billion of Russia’s assets are held at Euroclear, reiterated it will not back expropriation without binding guarantees against lawsuits and retaliation, officials said.
  • A reported U.S. peace proposal that would channel $100 billion from the assets into a U.S.-led vehicle and share profits with Washington has intensified EU efforts, with leaders insisting decisions on EU‑held assets are Europe’s to make.
  • EU capitals are developing a short‑term “bridging” loan financed by EU borrowing to keep Ukraine funded in early 2026 if the reparations‑loan mechanism is not agreed in time, though such borrowing would require unanimous approval.
  • Kyiv rejects treating the assets as a bargaining chip and asserts a legal claim to them, as Zelensky and von der Leyen coordinated on next steps and EU foreign policy chief Kaja Kallas said any deal must force concrete concessions from Russia.