Overview

• The European Commission is exploring a plan to use cash balances tied to frozen Russian holdings and replace them with short-term zero-coupon eurobonds to finance a "Reparations Loan" for Ukraine.
• Commission President Ursula von der Leyen has signaled that Kyiv would repay such a loan only if Russia pays reparations, after the EU already redirected interest earnings from the assets to support a G7-backed package.
• Dmitry Medvedev vowed that Russia would pursue any European state using its assets in all possible courts and even outside court processes, calling the idea unlawful.
• Roughly $300–$350 billion in Russian sovereign assets were blocked after the 2022 invasion, with nearly €200 billion tied up via Euroclear and cash from maturing securities accruing at the European Central Bank.
• Belgium and Euroclear have warned that moving beyond interest income to back a loan could trigger legal complications, and no formal EU proposal has been tabled.