Pursuing a "Reparations Loan"
Utilizing 140 Billion Euros in Frozen Assets
Foreign media have reported that the European Union (EU) has proposed to the United States a plan to use frozen Russian assets to support Ukraine's purchase of American-made weapons.
According to an internal report from the European Commission obtained by the Financial Times (FT) on the 17th (local time), the EU has drawn up a plan to lend funds to Ukraine using Russian central bank assets as collateral, with the primary purpose of financing arms procurement and strengthening the defense industry. This so-called "war reparations advance program" is being pursued under the premise that Russia will be required to pay this amount as postwar reparations.
Ursula von der Leyen, President of the European Commission, officially proposed a "reparations loan" last month, which would provide Ukraine with the funds it needs by leveraging frozen Russian assets. Specifically, the plan involves raising approximately 140 billion euros (about 231 trillion won) in maturing Russian assets held at Euroclear, Belgium's central securities depository, in the form of interest-free funds, and then lending this amount to Ukraine as an interest-free loan.
Diplomatic sources have interpreted this proposal as a strategic move to revive U.S. support for Ukraine, which has weakened under the Trump administration. With President Trump set to hold a summit with Russian President Vladimir Putin in Hungary soon, concerns are growing within Europe that the United States may shift toward a more conciliatory stance with Russia.
President Trump recently mentioned the possibility of providing Tomahawk missiles to Ukraine, but has put his position on hold ahead of the U.S.-Russia summit. After a call with President Putin on the 16th, he suggested the possibility of resuming U.S.-Russia trade after the war, stating, "Once the war is over, there will be no need for further weapons support."
The EU's proposal is also seen as aligning with President Trump's emphasis on "greater European burden-sharing." President Trump has repeatedly argued that the cost of American weapons supplied to Ukraine should be borne by Europe and NATO allies. In fact, NATO launched a new funding mechanism called the "Priority Ukraine Requirements List (PURL)" in July.
The EU report, at the request of France, included language prioritizing the procurement of European-made weapons, but also left the door open for cooperation with major allies, including the United States. This is interpreted as an adjustment mindful of the Trump administration's pragmatic diplomatic approach.
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