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Von der Leyen Pitches Ukraine Loan Plan Tied to Frozen Russian Assets, Launches €6 Billion Drone Alliance

The address tests a fractious Parliament where her U.S. tariff stance faces pushback.

Overview

  • Opening her State of the Union in Strasbourg, Ursula von der Leyen urged European unity and independence in defense of values and freedoms.
  • She proposed financing new loans for Kyiv using cash flows linked to immobilized Russian assets, stressing the assets themselves would remain untouched and that risk would be shared collectively.
  • Repayment by Ukraine would come only after Russia pays reparations, a structure she framed as making Moscow ultimately foot the bill for war damages.
  • Von der Leyen said the EU will advance €6 billion from a G7 loan to establish a drones alliance with Ukraine to provide industrial scale and sustain Kyiv’s edge over Russia.
  • The Commission is sticking to its August 1 trade position as Trade Commissioner Maros Sefcovic noted Washington is applying both exemptions and a 15% car tariff, while Socialists—echoed by Stefano Bonaccini—criticized the deal as unfair; over 100 MEPs staged a Gaza flash mob before the speech.