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European Commission Moves to Use Frozen Russian Assets to Fund Ukraine

he European Union has approved a proposal by the European Commission to mobilize up to 90 billion euros through frozen Russian assets to support Ukraine over the next two years. The plan aims to use state-owned Russian funds frozen since 2022 as collateral for financing. Ukraine would only repay this credit if Russia agrees to compensate for the damages caused by the war.

Several member states have expressed support, calling it the most viable and realistic option to meet Ukraine’s growing economic and military needs. However, the proposal faces resistance from countries holding the majority of the assets, which fear legal and financial consequences if Russia later claims the funds.

Discussions are intensifying ahead of the EU summit on December 18, where leaders are expected to decide whether to implement the reparations loan or resort to traditional financing through joint debt. If approved, the mechanism could be implemented in the first half of 2026, providing immediate financial relief to Ukraine and increasing pressure on Moscow.

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