The European Union is contemplating revisiting the proposal for a reparations loan to Ukraine, contingent upon Hungary’s continued obstruction of a previously agreed €90 billion aid package.
EU leaders had initially approved the €90 billion funding for Ukraine late last year, which was viewed as a backup plan. Estonia’s Prime Minister Kaja Kallas emphasized the importance of providing necessary financial support to Ukraine to combat Russian aggression.
“Plan A involved utilizing frozen assets. If Plan B fails, we will revert to Plan A. We must ensure Ukraine receives the funding it needs,” Kallas stated.
Last year, the EU had actively discussed the possibility of offering Ukraine a reparations loan amounting to €210 billion, backed by frozen Russian assets. However, consensus among EU member states proved elusive, primarily due to Belgium’s demand for substantial guarantees related to the proposal. A significant portion of Russia’s frozen assets is held in the Belgian Euroclear depository.
The EU is exploring the option of a reparations loan for Ukraine as Hungary continues to block a substantial aid package. Discussions highlight the need for financial support amid ongoing conflicts with Russia.