The European Union has proposed providing Ukraine with funding either as a grant of 90 billion euros (104 billion dollars) or a loan secured by EU debt if countries fail to approve the desired plan to use frozen Russian assets, Bloomberg reports, writes UNN.
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In a letter from European Commission President Ursula von der Leyen to EU leaders, seen by Bloomberg, the bloc's executive body proposes three options for stabilizing Ukraine's finances: "member states should finance at least 90 billion euros in grants for 2026-2027; take on joint EU debt to issue a loan; or use immobilized Russian funds to secure a loan."
The letter was published as Belgium continues to stall the implementation of the plan for Russian assets, which is the EU's preferred approach.
The document states that the impact of grants would range from 0.16% to 0.27% of member states' GDP. Meanwhile, any EU loan would require member states to "provide legally binding, unconditional, irrevocable guarantees on demand."
The EU's goal remains to provide Ukraine with a loan using nearly 200 billion euros of frozen Russian assets held by the clearing company Euroclear. Under this option, Euroclear would receive a debt contract guaranteeing that any future Russian claims would be covered by the EU and potentially member states, the publication writes.
Ukraine would only have to repay the loans if Russia agrees to compensate for the damage it has caused to the country.
This plan is being blocked by Belgium, where Euroclear is based, as Brussels demands more robust guarantees due to fears that it could find itself in a difficult position regarding the need for repayment. According to informed sources, negotiations last week between von der Leyen and Belgian Prime Minister Bart De Wever were unsuccessful.
"Ukraine needs financial support at the beginning of next year. According to the document, in 2026, the country needs at least 51.6 billion euros for military needs alone," the publication states.
The document also notes that the financial burden is likely to be particularly high in 2026 and 2027. It is estimated that Ukraine's needs in these years could exceed 70 and 64 billion euros, respectively, the publication writes.