A new financial instrument is about to be created by the European Commission with the ambitious goal of providing long-term support to Ukraine, using frozen Russian assets as collateral. The proposal, presented by Commission President Ursula von der Leyen, represents a strategic move that aims to transform the economic burden of supporting Ukraine into a tool for sustainability, while sending a clear message to Moscow.
Under the plan, which is still awaiting approval, Ukraine will gain access to a significant loan, the repayment of which will be secured not by its own budget, but by funds derived from the frozen assets of the Russian Federation. This innovative scheme provides for Kyiv to begin servicing the loan only after Russia pays the reparations due for the damages caused. The main Russian assets themselves will not be directly affected or confiscated under this mechanism.
Support for the Ukrainian army and security
These funds will help Ukraine already today. But they will also be decisive in the medium and long term for the country's security. For example, for financing a strong Armed Forces of Ukraine as a first line of security guarantees_q_, she said, emphasizing the need for immediate help and a long-term defense strategy.
Ursula von der Leyen's statement emphasizes that support for Ukraine is not just a humanitarian act, but a fundamental element of the European security architecture.
The European Commission's proposal is particularly important in the context of the ongoing aggression, which places a heavy financial burden on Kyiv and its allies. By using Russian assets as collateral, Brussels offers a pragmatic solution that shifts the focus from the debate on direct confiscation of funds to a more nuanced and legally protected financing mechanism. Although the exact amount of the planned loan has not yet been publicly announced, it is expected to be significant, given the scale of Ukraine's needs. This move by the EU is seen as a decisive step toward strengthening the Ukrainian economy and army, while increasing the pressure on Russia to take responsibility for the destruction it has caused.