Overview

• Under the plan, Ukraine would receive a zero‑interest loan repayable only after Russia compensates war damages, with the frozen reserves remaining intact.
• Member states would provide budget guarantees initially, with a shift to the EU’s next multiannual financial framework envisioned from 2028.
• Merz will table the proposal at next week’s informal EU summit in Copenhagen, with an October leaders’ meeting potentially commissioning a legally robust design.
• Roughly €200–€210 billion of Russian central‑bank assets are frozen in Europe, and to date only the accrued interest has been directed to Ukraine.
• Kremlin figures denounced the move, while economists praised avoiding confiscation yet cautioned that €140 billion may be insufficient and could amount to de facto grants if Moscow never pays.