EU making ready €130bn mortgage for Ukraine from frozen Russian property, says Reuters

The EU might present Ukraine with a so-called reparations mortgage of as much as €130 billion, however the closing quantity will likely be decided after the Worldwide Financial Fund’s evaluation of Ukraine’s wants in 2026-2027.

Supply: Reuters, citing European officers

Particulars: The thought of a reparations mortgage, primarily based on Russian property frozen within the West after the 2022 invasion, was first put ahead by European Fee President Ursula von der Leyen on 10 September.

The mortgage is meant to assist Kyiv finance defence and would solely should be repaid as soon as Russia pays reparations below a peace settlement. The chance could be assured collectively by EU international locations and probably different G7 states.

Of the roughly €210 billion in Russian property held in Europe, the bulk is saved on the Belgian depository Euroclear. The officers word that €175 billion of those property have already been transformed into money and will function the premise for the brand new mortgage.

Earlier than launching the mechanism, the EU plans to repay the sooner G7 mortgage of €45 billion. After that, in accordance with three folks near the discussions, round €130 billion might stay obtainable for the brand new instrument.

Background:

• In July 2025, Ukraine obtained €1 billion from the EU, generated from the proceeds of frozen Russian property below one other G7 initiative, ERA.
• It was additionally reported that the EU intends to generate a whole bunch of billions extra euros from frozen Russian property by transferring them to another funding fund, with almost €200 billion of Russian state property at the moment frozen in Belgium below dialogue.
• In June, Ukraine additionally obtained €1 billion from the European Union coated by the revenue from Russian property.
• Earlier studies indicated that the European Union had suspended discussions on confiscating frozen Russian property. Beneath EU legislation, Russian property should stay immobilised till Russia ends its aggressive warfare in opposition to Ukraine and compensates for the injury it has prompted.
• In 2024, the G7 agreed to collectively present Ukraine with a US$50 billion mortgage backed by Russian property: the funds have been formally issued as a credit score, however repayments would come from the proceeds of frozen Russian property. The EU is predicted to contribute €18.1 billion below this mechanism.

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