European Commission president promotes idea of reparation loan for Ukraine based on frozen Russian assets

European Commission President Ursula von der Leyen has confirmed that she has proposed the idea of providing Ukraine with a reparations loan based on frozen Russian assets.

Speaking at a press conference with NATO Secretary General Mark Rutte, von der Leyen said the EU needs a more structured solution for military support to Ukraine.

"This is why I have put forward the idea of a reparations loan that is based on the immobilised Russian assets," Ursula von der Leyen  explained at a joint press conference.

The EC president clarified that the loan would not be disbursed in a single payment but in tranches and with certain conditions.

"We will strengthen our own defence industry by ensuring that part of the loan is used for procurement in Europe and with Europe," she added.

Von der Leyen emphasised that there will be no outright confiscation of Russian assets.

"Ukraine has to repay the loan if Russia is paying reparations," she noted.

Earlier reports indicated that the European Commission had proposed that EU member states use frozen Russian assets to fund a new €140 billion loan for Ukraine.

According to European Pravda, the idea of the reparations loan will be discussed by G7 finance ministers later this week.