EU considers unblocking Russian assets for Ukraine

EU considers unblocking Russian assets to support Ukraine

Financial deadline - April 2026

According to El País, Ukraine has sufficient resources to cover public expenditure only until April 2026.
European officials warn that without new support programmes, the government could face a shortage of funds for defence and social needs.

“Reparation loan” from frozen assets

Brussels is discussing the possibility of creating a so-called «reparation credit», which will allow you to use income from frozen Russian assets to support the Ukrainian budget.
It is a part of the total amount 140 billion euros, that have been held by European financial institutions since 2022.

The issue is to be discussed European Commission on Thursday, 24 October.

Disagreements in the EU

Some Member States are against unblocking assets, The company argued that there were legal risks and possible diplomatic consequences.
However, most European diplomats believe that financial stability of Ukraine is more important than political differences.

«The EU must find a way to help Kyiv without violating international law,» the El País one of the European officials.

Context.

Earlier, the European Commission approved the use of income from frozen Russian funds for military support of Ukraine through the fund European Peace Facility.
Now we are considering the possibility of extend this mechanism to include budget support, to ensure the stability of public finances until 2026.