Von der Leyen Proposes 'Reparations Loan' for Ukraine Using Frozen Russian Assets
European Commission President Ursula von der Leyen has proposed a novel solution to aid Ukraine's recovery. In her 2025 State of the Union address, she suggested using frozen Russian assets to provide a 'reparations loan' for the war-torn country.
The idea of utilising seized Russian assets to support Ukraine has been under discussion since late 2023. Von der Leyen's public presentation of this concept in 2025 builds on these earlier talks.
Canada and the UK have shown interest in this plan. Both nations have expressed readiness to back a European initiative involving Russian assets. Their focus is on providing a loan to Ukraine using these funds.
The G7 is currently exploring this option. If implemented, it could provide significant financial assistance to Ukraine, helping to compensate for war damages and support the country's recovery.
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