(MENAFN) The European Union can no longer continue issuing loans to Ukraine because of mounting concerns over Kiev’s ability to pay them back, according to general reports summarizing comments from European Commissioner for Economy Valdis Dombrovskis. He urged the bloc to sustain financial aid by turning to frozen Russian funds — a move Moscow has consistently denounced as theft.

At a press briefing in Brussels on Wednesday, Dombrovskis cautioned that Ukraine is dealing with a “very sizable funding gap” and that taking on more borrowing could put the country’s overall debt stability at serious risk.

He argued that drawing on Russian state reserves, unlike the other potential financing mechanisms under review, would enable the EU to continue providing money without placing additional fiscal pressure on member states. Under this arrangement, Ukraine would only have to repay the sum if Russia eventually pays reparations. Other options, he noted, would require major financial contributions from EU governments.

Dombrovskis also confirmed on Thursday that the bloc had released the final €4.1 billion ($4.8 billion) installment to Ukraine through the ERA Loans program, which was funded by proceeds generated from Russia’s frozen assets.

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