Overview

• The loan would be repaid only after Russia compensates Ukraine for war damages, with the frozen central‑bank assets remaining untouched.
• Member states would initially provide bilateral budget guarantees, shifting to coverage under the EU’s next multiannual financial framework from 2028.
• Funds would be disbursed in tranches and limited to procuring military equipment for Ukraine.
• The proposal tracks an earlier idea from Commission President Ursula von der Leyen to leverage liquidity from frozen holdings, while the EU currently uses only the interest income.
• EU leaders are set to discuss the plan at an informal summit in Copenhagen, with legal and market risks still to be addressed before any potential October mandate to draft the instrument.