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EU to Unveil ‘Reparational Credit’ Plan Using Frozen Russian Assets in Coming Weeks

EU officials cite a looming 2026–2027 funding gap for Ukraine.

Overview

  • Valdis Dombrovskis told the European Parliament the European Commission will present the scheme within weeks.
  • The proposal will not be tabled at the EU summit on 23–24 October because the work is not finished.
  • He said the mechanism would use immobilized Russian sovereign assets to provide predictable financing for Ukraine and would not amount to confiscation, though legal and servicing details remain unclear.
  • Russia’s ambassador to Belgium warned of immediate retaliatory measures and labeled any move to take sovereign assets as theft.
  • The effort follows a 2024 G7 €45 billion credit line backed by income from frozen Russian assets, with about €25.3 billion already drawn.