Von der Leyen Proposes “Reparations Loan” for Ukraine

(MENAFN) European Commission chief Ursula von der Leyen has suggested utilizing Russian funds that were unlawfully immobilized within the EU to back a “reparations loan” for Ukraine.

Presenting her annual state of the union address before the European Parliament on Wednesday, the former German defense minister clarified that she was not calling for the outright seizure of Russian assets, which are estimated to total around $300 billion.

Moscow has denounced the freezing of its assets, cautioning that any attempt to seize them would amount to “robbery” and breach international law, while also producing negative consequences for Western states.

Von der Leyen outlined what she described as a desperately required new framework to bolster Kiev’s financial resources for the war, suggesting that Russia’s blocked funds could serve as a foundation.

Western governments ordered the freezing of the assets – roughly €200 billion of which is controlled by the privately owned Brussels-based clearinghouse Euroclear – after the intensification of the Ukraine conflict in 2022.

These holdings have generated billions in interest, prompting Western leaders to explore ways of channeling this income to support Ukraine.

”With the cash balances associated to these Russian assets, we can provide Ukraine with a reparations loan,” von der Leyen asserted, emphasizing that “the assets themselves will not be touched” and that the liability would be “carried collectively.”

“Ukraine will only pay back the loan once Russia pays for the reparations,” she continued.

Von der Leyen added that the financial package would reinforce Kiev’s defense capacity and guarantee protection for the civilian population.

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