The European Commission has unveiled two solutions to support Ukraine's financial needs for 2026-2027.
As reported by "Khvylia", this is stated in the corresponding press release on the European Commission's website.
European Commission President Ursula von der Leyen, commenting on the presented solutions, stated that thanks to them, the European Union "will provide Ukraine with the means to defend itself and advance peace negotiations from a position of strength".
She also expressed the opinion that this should become "an additional incentive for Russia to sit down at the negotiating table".
"We are proposing solutions that will help cover Ukraine's financial needs over the next two years, support the state budget and strengthen its defense industry, as well as its integration into the European defense industrial base. We propose creating a reparation loan using cash balances from immobilized Russian assets in the EU, with reliable guarantees," von der Leyen said.
At the same time, these two solutions are backed by a comprehensive set of five legal proposals offering two possible solutions. In particular, it refers to EU borrowing that will rely on the EU budget ("cushion"), and a reparation loan that will give the EC the right to borrow cash balances from European financial institutions holding frozen Russian assets.
"They reflect the EU's commitments to support Ukraine not only in defending its sovereignty and supporting state functions, but also as a strategic investment in Europe's security and in the pursuit of a just and lasting peace," the statement says.
In addition, the European Commission explained that these proposals introduce a number of safeguards to protect EU member states and financial institutions from possible retaliatory measures from Russia and from illegal expropriation beyond its borders, including in jurisdictions friendly to Moscow.
"To cover any residual risk, the package provides for a solidarity mechanism backed by bilateral national guarantees or the EU budget. While the proposals fully comply with European and international law, they also support the integrity of the EU financial market and the status of the euro as a global currency," the press release noted.
This package consists of:
- a proposed regulation on creating a reparation loan;
- a proposal to prohibit any transfer of immobilized assets of the Russian Central Bank back to the Russian Federation;
- two proposals introducing important guarantees for the reparation loan, designed to protect EU member states and financial institutions from possible retaliatory measures.
It was previously reported that the ECB deprived Ukraine of hope for $140 billion.
