The administration of the US President Donald Trump is pressuring European Union countries not to support a reparations loan to Ukraine using frozen Russian assets. EU leaders will meet at a European Council summit on December 18 to discuss the details of the reparations loan.
Politico writes about this, citing four sources among European officials.
An American campaign of influence, in which White House officials made informal, behind-the-scenes contacts directly with capitals, led to Italy, Bulgaria, Malta and the Czech Republic joining the group of countries opposing the loan. Previously, only Belgium had opposed it, as €140 billion in frozen Russian assets are held in the Belgian financial institution Euroclear.
These countries have prepared a document calling on the European Commission to consider alternative options for using Russian assets to support Ukraine in the coming years.
They are referring to Plan B — issuing joint EU debt to finance Ukraine in the coming years. However, this idea has its problems, because it requires unanimity, so it can be vetoed by Hungarian Prime Minister Viktor Orbán.
Under a draft “peace plan” agreed upon by the White House and the Kremlin, Washington wants to use some of Russia’s frozen assets to finance U.S.-led reconstruction efforts. The reparations loan would allow Ukraine to decide where to direct the money.
On December 5, Bloomberg, citing sources, wrote that the United States is urging the EU not to use Russian assets for a reparations loan to Ukraine. The Americans argued that these assets are needed to secure a peace agreement between Kyiv and Moscow, so they should not be used to continue the war.
On December 11, The Wall Street Journal, citing sources, reported that the United States had handed over to Europe a plan to restore Ukraine and integrate Russia back into the global economy.
American companies plan to use an estimated $200 billion in frozen Russian assets for projects in Ukraine. Among them is a huge new data center that will run on energy from the occupied Zaporizhzhia NPP.
What is known about the reparation loan?
The possibility of providing Ukraine with a €140 billion loan using frozen Russian assets has been discussed since early October. At that time, EU leaders were unable to agree on the loan — Belgium opposed it, and France and Luxembourg were concerned about the legal consequences.
The European Commission officially presented the idea of a reparations loan on December 6, and its details were revealed by Politico. This loan is to consist of €165 billion: €25 billion of frozen Russian state assets held in private bank accounts across the European Union, and €140 billion held in the Belgian financial institution Euroclear. The money is planned to be distributed as follows:
- €115 billion will be allocated to finance Ukraineʼs defense industry;
- €50 billion will cover Ukraineʼs budget needs;
- €45 billion will be used to repay the loan that the G7 provided to Ukraine in 2024.
Belgium is opposed to the loan, worried that Russia would sue it if the plan goes ahead, as the frozen assets are held in Belgiumʼs Euroclear. The Belgian prime minister has asked the other 26 EU countries to guarantee coverage of the legal and financial risks.
Meanwhile, according to Bloomberg, Russia has prepared a response to the Westʼs possible "reparations loan" to Ukraine — it will nationalize foreign assets.
And on December 5, Bloomberg, citing sources among European diplomats, wrote that the United States had lobbied several EU countries not to use Russian assets for reparations loans for Ukraine. American officials convinced EU states that these assets were needed to secure a peace agreement between Kyiv and Moscow, so they should not be used to continue the war.
On December 8, the G7 countries supported the use of frozen Russian assets for reparations to Ukraine and stated that they were ready to increase pressure on Russia if peace talks failed.
On December 11, the EU Council decided to freeze Russian assets indefinitely.
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