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EU Readies Backups to Ukraine Funding Plan as Belgium Resists and Slovakia Objects

Finance ministers meet November 13 to test routes for closing Ukraine’s 2026–27 budget gap.

Overview

  • The European Commission is finalizing an options paper that adds joint EU borrowing and bilateral state loans as fallbacks if the reparations-loan scheme stalls.
  • Belgium, home to Euroclear holding most frozen Russian assets, has not consented and is seeking legal and liquidity guarantees before releasing cash.
  • Slovak Prime Minister Robert Fico said Slovakia will not join schemes if proceeds fund military costs, underscoring veto risks linked to sanctions renewals.
  • The reparations-loan model would swap Euroclear cash with zero‑coupon AAA Commission bonds and send the cash to Kyiv, with repayment only if Russia later pays war reparations.
  • EU ministers will debate the choices on November 13, with officials warning a December deal could still face 2026 delays due to national approvals as the Commission also courts Norwegian guarantees and urges use of the €150 billion SAFE procurement tool.