Ukraine has called on European countries not to limit the ways in which a promised 163 billion euro loan, which will consist mainly of frozen Russian assets, writes the news agency Reuters.
Kiev has indicated that it must also be able to purchase weapons from countries outside the European Union, carry out work to repair the damage caused by Russia, and pay compensation to victims. EU leaders will discuss the so-called “reparations loan” on the 23rd of October, with Ukrainian President Volodymyr Zelensky also participating. Some countries have suggested allowing the funds to be used mainly for the purchase of European-made weapons to promote the growth of the defense industry. Irina Mudra, a legal adviser to the Zelensky administration, told Reuters that Kyiv needs the funds by the end of the year and needs autonomy in how they are used. Mudra pointed out that any conditions undermine the principles of justice, and the victim, not the sponsors or partners, determines the most urgent needs.
For example, the US-made Patriot air defense systems are particularly important for Ukraine, so that it can at least partially protect critical infrastructure from Russian strikes. Mudra told Reuters that Ukraine supports cooperation with the EU defense industry, and some contracts are already close to being concluded. However, as the adviser said, Kyiv insists that it needs autonomy to decide how to allocate funds, and if European defense capabilities are not enough, it must be able to purchase weapons elsewhere. Also,
part of the loan should pay for the most urgent needs in reconstruction work,
such as the reconstruction of critical infrastructure that has been badly damaged by Moscow’s attacks.
According to a European Commission document seen by Reuters, some European countries want the funds to be used mainly for the purchase of European-made weapons, while others believe that more flexibility is needed. As a compromise, the EC is proposing a way for most of the frozen funds to be used for European weapons, but for Ukraine to do with the rest as it sees fit.
European leaders have shown broad support for the idea that frozen Russian assets could be diverted to Ukraine. The Kremlin has described the plan as an illegal seizure of Russian property and threatened that such action would have consequences.
International law states that the assets of a sovereign state cannot be confiscated. The plan is for EU countries to lend the funds to Ukraine, which it will repay once it has received reparations payments from Russia after peace is concluded. Since US President Donald Trump took office in January, it has become more difficult for Europe to support Ukraine, as the Trump administration wants to shift the burden entirely to the EU.
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