The European Commission has proposed an unprecedented use of frozen Russian assets or international borrowing to raise 90 billion euros ($105bn) to support Ukraine’s war effort against Russia, though critical reservations about the plan from key stakeholder Belgium appear unresolved.The announcement by the European Union’s executive body on Wednesday proposed “two solutions to address Ukraine’s financing needs” for 2026 and 2027.Recommended Stories list of 3 itemsend of listThe first option is an EU loan to Kyiv sourced from the private market, while the second preferred option is a “reparations loan” funded using Russian state assets frozen in the EU in response to Moscow’s 2022 invasion of Ukraine.“[These options] reflect the EU’s commitment to supporting Ukraine not only in defending its sovereignty and maintaining state functions, but also as a strategic investment in Europe’s security and in the pursuit of a just and lasting peace,” the Commission said in a press release.Commission President Ursula von der Leyen told reporters that the proposals will ensure Ukraine “has the means” to defend itself, “and take forward peace negotiations from a position of strength”.“We are proposing to cover two-thirds of Ukraine’s financing needs for the next two years. That’s 90 billion euros. The remainder would be for international partners to cover,” she said.“We are increasing the cost of Russia’s war of aggression. And this should act as a further incentive for R …
