Sweden and Finland suggest using frozen Russian assets to help Ukraine in 2026-2027
Frozen Russian assets held within the European Union should be used to provide Ukraine with a reparations loan in 2026-2027 to finance its budgetary and military needs, as suggested by Sweden and Finland.
Sweden and Finland have called on EU leaders to support the European Commission's initiative to provide Ukraine with a reparations loan using frozen Russian assets.
"Ukraine's unmet financing needs for 2026 and 2027 are estimated at €30 billion, with budgetary and military support needs. A concrete need is projected to arise during the second quarter of 2026," the document states.
The EU and its member states are expected to play a central role in Ukraine's financial support, as "investing in Ukraine is an investment in European security as a whole".
"Sweden and Finland are strong advocates for increasing support to Ukraine and we welcome the Commission's work on providing a Reparations Loan to Ukraine, utilising the immobilised Russian assets to the largest extent possible. Such a loan will provide Ukraine with stable and predictable funding to cover its most pressing medium-term budgetary and military needs for 2026 and 2027," the two governments emphasised.
Sweden and Finland are convinced that Russian assets should remain frozen until Russia ceases its aggressive war and compensates Ukraine for the damage caused. Crucially, the loan to Ukraine should only be repaid after Ukraine receives war reparations from Russia.
"We encourage the Commission to swiftly move forward with a concrete proposal and all Member States to engage decisively," the document adds.
On 26 September, it was reported that the European Commission has proposed that EU member states use frozen Russian assets to finance a new loan for Ukraine worth €140 billion.
Last week, German Chancellor Friedrich Merz suggested providing Ukraine with €140 billion from frozen assets held at the Euroclear depository in Belgium, to help cover its military needs over the next two to three years.