Ukraine is pressuring European allies to make a political decision in December to disburse a loan to Kyiv, which would consist mainly of frozen Russian assets; so far, an agreement has not been reached and it is indicated that it is legally complicated, writes the news agency Reuters.
European Union leaders failed to agree in October on the disbursement of a so-called reparations loan to Ukraine, and this will be discussed again during a meeting on the 18th of December. Ukraine needs significant financial support from the second quarter of 2026.
Iryna Mudra, a legal adviser to the administration of Ukrainian President Volodymyr Zelensky, told Reuters that the meeting in December could be Europe’s last chance this year to agree on support for Kyiv. Mudra said in an interview that Ukrainians do not expect all the nuances to be clear by then, but it is necessary to agree on the structure of the loan. She said it was crucial that Ukraine be involved in decisions about the allocation and priorities of funds.
Economic experts have said there is little clarity about direct US support, and Ukraine could run out of funds as early as the first quarter of 2026 if Europe does not provide assistance. EU leaders agreed in October to provide support to Ukraine for the next two years, but have hesitated to implement a plan to use frozen Russian assets to provide a very large loan to Kyiv.
The main objections were raised by Belgium, which manages a large part of the frozen assets.
European Commission President Ursula von der Leyen outlined three ways to provide financial support to Ukraine in a letter to European governments on the 17th of November, and a combination of several options is also possible. Without a loan, EU countries could provide grants, and the bloc could borrow money on the foreign market.
Ukraine needs 135.7 billion euros in funds in 2026-2027, and a loan of 140 billion euros could be created from frozen Russian assets.
A new corruption scandal has overshadowed Kyiv’s relations with its allies, and some Ukrainian politicians have demanded the formation of a new government.
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The post Ukraine urges to decide on disbursement of frozen Russian assets appeared first on Baltic News Network.
