(MENAFN- UkrinForm) According to Ukrinform, the European Commission stated this on its website.

The Commission proposes two possible mechanisms: EU borrowing backed by the EU budget and a Reparations Loan, which would give the Commission the authority to borrow funds from EU financial institutions holding frozen assets of the Russian Central Bank.

It is noted that these proposals 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. In addition, the proposals put in place a number of safeguards to protect Member States and financial institutions from possible retaliation measures within Russia, and from unlawful expropriations outside Russia, notably in Russia-friendly jurisdictions.

To cover any residual risk, the package includes a strong mechanism of solidarity backed by bilateral national guarantees or the EU budget.

According to the Commission, while the proposals comply fully with European and international law, they also maintain the integrity of the Union's financial market and the euro's status as a global currency.

"With today's proposals, we will ensure Ukraine has the means to defend themselves and take forward peace negotiations from a position of strength. We are putting forward solutions to help cover Ukraine's financial needs for the next two years, support the State budget and strengthen its defence industry as well as its integration into the European defence industrial base. We are proposing to create a Reparations Loan, using the cash balances from immobilised Russian assets in the EU, with strong safeguards for our Member States," said European Commission President Ursula von der Leyen.

She added that the EU is increasing the cost of Russia's war of aggression.

"And this should act as a further incentive for Russia to engage at the negotiating table," von der Leyen said.

Read also: EU participating in consultations on peace talks in Ukraine – European Commission

As Ukrinform reported, the European Commission has proposed a legal solution aimed at addressing Belgium's concerns over the use of 140 billion euros in frozen Russian assets held in Brussels to provide a loan to Ukraine.

Photo: eumetsat

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