Von der Leyen proposes three funding paths for Ukraine

European Commission President Ursula von der Leyen has outlined three potential ways to fund Ukraine over the next two years in a letter to EU member state leaders.

The options include: bilateral grants from each member state; joint EU borrowing backed by legally binding, unconditional guarantees from states; or a €140 billion reparations loan using frozen Russian assets, which Ukraine would repay only if Russia pays war reparations, CE Report quotes HINA.

Von der Leyen noted that the first two options would place heavy fiscal burdens on member states, while the reparations loan would avoid new debt, interest costs, or impacts on national budgets. She estimated Ukraine will need €83.4 billion for defence and €52.3 billion for economic stabilisation and budget support in 2026-27.

EU leaders are expected to decide on the aid package at a summit on 18-19 December. The use of frozen Russian assets remains contentious, particularly with Belgium seeking guarantees that other member states share potential legal risks.

Von der Leyen stressed there are no simple solutions but warned that Europe cannot afford paralysis while waiting for a perfect answer.

foto OLIVIER HOSLET