Of the European Union's €140 billion reparations loan, €40 billion will go to cover Ukraine's unmet budget needs, and €100 billion will go to military needs. In addition, €45 billion will go to cover ERA, writes UNN with reference to Vladyslav Rashkovan, Deputy Executive Director from Ukraine at the International Monetary Fund.
The European Union's €140 billion reparations loan to Ukraine, based on frozen Russian assets, can provide €40 billion ($46 billion) of the $60 billion unmet financing needs of Ukraine's budget in 2026-2027, while the remaining €100 billion will go to military needs.
Also, approximately €45 billion from the assets will go to cover the ERA program, as it is built on future revenues from these assets. Rashkovan added that the European Commission is already working on the legal form for implementing this mechanism.
Merz supported a "reparation loan" to Ukraine for 140 billion euros: on what terms25.09.25, 18:09
The European Commission is already working on the legal form of this mechanism [the use of Russian assets - CES], and a solution is likely to be ready by mid-November. The instrument is expected to become available in the first quarter of 2026, after member states provide guarantees to the European Commission in case of potential claims from Russia.
Addition
EU diplomacy chief Kaja Kallas stated that Russia has no real interest in peace and emphasized that this week the European Union plans to adopt the 19th package of sanctions and support the use of frozen Russian assets to finance Ukraine's defense.
European Commissioner for Economy Valdis Dombrovskis stated that the US supports the new IMF lending program for Ukraine and the European Union's initiative to provide Ukraine with a loan based on the assets of the Russian central bank.