European Union ambassadors will begin deliberations on Friday over a proposal to provide Ukraine with up to €140 billion ($164 billion) in new loans, funded by frozen Russian central bank assets.
According to a draft plan obtained by Bloomberg, the EU would tap into the roughly €180 billion held at Belgian clearinghouse Euroclear, redirecting the funds to issue loans to Kyiv. Under the mechanism, the bloc would enter a “tailored debt contract” with Euroclear at a 0% interest rate, ensuring that the clearinghouse could still meet any future Russian claims.
Crucially, Ukraine would only be obliged to repay the loan if Russia agrees to fund reconstruction or if EU sanctions on Moscow are lifted. In practice, the arrangement would shield Kyiv from additional debt while avoiding the outright confiscation of Russian assets — a step EU officials have long said would only be possible once Moscow compensates for wartime damages.
The scheme would be guaranteed by EU member states and marks a significant escalation in efforts to channel Russia’s frozen reserves into Ukraine’s defense and reconstruction. Momentum behind such measures has grown in recent weeks, with Germany — Europe’s largest economy — backing the initiative on Thursday. The Group of Seven nations are also coordinating discussions on broader ways to pressure Russia, including sanctions on its energy revenues and networks that facilitate its oil trade.
The EU has already committed €45 billion in loans through a G-7 initiative that uses profits generated by frozen Russian assets. The new proposal would build on that framework, leaving roughly €140 billion in additional financing available for Ukraine.
Still, resistance remains within the bloc, particularly from Belgium, where most of the frozen Russian funds are held. Belgian Prime Minister Bart De Wever voiced his country’s concerns on Friday: “Taking Putin’s money and leaving us with the risks. That’s not going to happen,” he told local media.
Unlike sanctions, which require unanimous approval, the loan plan could move forward with a qualified majority vote — making it easier for Brussels to sidestep outright opposition. EU leaders are expected to review the proposal at a summit in Copenhagen next week. If approved, the bloc hopes to finalize the arrangement by year’s end, with disbursements to Ukraine beginning in 2026, according to people familiar with the talks.
