Von der Leyen reveals that many EU countries hesitant whether reparations loan to Ukraine is good idea

European Commission President Ursula von der Leyen has said ahead of the informal European Council summit in Copenhagen on 1 October that providing Ukraine with a reparations loan based on frozen Russian assets is a sensitive issue that many EU member states remain hesitant about.

"We have to increase the pressure on Russia. And this is why I have proposed reparation loans for Ukraine on the basis of the immobilised Russian assets," European Commission President said.

Von der Leyen stressed that "it is a very sensitive discussion".

"Many countries are very hesitant, to say the least, that this is a good idea," she noted.

"We are not confiscating the assets, but we are taking the cash balances for a loan to Ukraine. Ukraine has to pay back this loan if Russia pays reparations, because the perpetrator has to be held accountable," von der Leyen explained.

Denmark, which currently holds the EU presidency, supports the Commission's idea of granting Ukraine a reparations loan using frozen Russian assets held in the EU.

Sweden and Finland, in a joint statement on 1 October, also called for frozen Russian assets to be used to support Ukraine in 2026-2027.

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.