The Prime Ministers of Finland and Sweden, Petteri Orpo and Ulf Kristersson, have called on the European Commission to use frozen Russian assets to support Ukraine.
They wrote about this in a joint letter submitted on the eve of informal EU meetings in Copenhagen, the Helsinki Times reports.
Orpo and Kristersson stated that approximately €130 billion will need to be allocated to support Ukraine by 2027.
The plan involves using frozen assets as collateral for a loan to Ukraine, with a deferral until Russia pays reparations.
According to the publication, the letter submitted by Finland and Sweden aims to influence discussions on financing Ukraine by putting frozen Russian funds at the center of the debate.
The document argues that delaying action will incur strategic costs. In addition, the ministers warned that without a predictable flow of funding, Ukraineʼs military and civilian institutions risk becoming vulnerable to disruption.
It does not specify the timing of the proposed loan, but indicates that work to prepare for disbursements "should begin immediately".
It was previously reported that the British government is considering the possibility of financing a new wave of loans for Ukraine with Russian state assets frozen in the country.
Frozen Russian assets
The value of frozen Russian sovereign assets in the EU is almost €211 billion. In total, the European Union, the G7 countries and Australia have frozen approximately €260 billion in securities and cash.
In October 2024, the EU Council finally approved a loan of up to €35 billion to Ukraine. This money is the blocʼs contribution to the G7 initiative to provide Ukraine with a $50 billion (€45 billion) loan, which will be repaid with the proceeds from frozen Russian assets.
A few days after the EU Council decision, the G7 countries agreed to a $50 billion loan for Ukraine using proceeds from Russiaʼs frozen assets. The US contribution was $20 billion.
- The European Commission on August 29 began developing a mechanism to transfer almost €200 billion of frozen Russian assets. The EU is considering transferring the assets to a “special purpose holding company” supported by the G7 countries.
- The €18 billion from the EU will be paid in full by the end of the year — which is why they are again looking for a new solution regarding frozen Russian assets.
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