Von der Leyen Unveils EU’s Options for Financing Ukraine
European Commission President Ursula von der Leyen. REUTERS/Yves Herman/File PhotoEuropean Commission President Ursula von der Leyen informed EU governments about three options for meeting Ukraine’s financial needs in a letter. These options include using a loan from frozen Russian assets, and a mix of different methods is also possible. Despite EU leaders agreeing to support Ukraine financially for the next two years, they hesitated to endorse the use of frozen assets due to concerns from Belgium. All EU countries, except Hungary, have asked for proposals to assist Ukraine.
Von der Leyen outlined three main approaches: grants from Member States, a limited loan from EU borrowing on financial markets, and a loan linked to frozen assets. These options can be combined or used sequentially. The situation is urgent, and any chosen option may be transitional, with the need for approval by the next European Council meeting in December being emphasized for prompt action. The goal is to ensure funding for Ukraine starts before the new long-term budget is adopted in 2028.
With information from Reuters