The European Commission is considering an alternative to a "reparation loan" for Ukraine through joint EU borrowing

The European Commission is considering an alternative to a "reparation loan" for Ukraine through joint EU borrowing

The European Commission is exploring an alternative to the "reparation loan" for Ukraine.

This was reported by Euractiv, citing its sources.

According to the information, an option to cover Ukraine’s financial deficit through EU common debt and bilateral grants from member states is being considered.

These initiatives will be presented in a document to be sent to EU states in the coming weeks.

As the publication notes, these borrowings will complement the «reparation loan» of €140 billion, which involves the use of frozen Russian assets held in the Belgian fund Euroclear.

However, despite the "reparation loan" remaining a priority for the European Commission, it is currently being blocked by Belgium.

Belgian Prime Minister Bart De Wever proposed using joint borrowings as an alternative, stating that «unlike Russian funds, with debt, at least it is clear how much, for how long, and who is responsible for it.»

Earlier, Politico reported that new EU country debts are being considered as a possible alternative to the "reparation loan."

The next discussion on the topic of the «reparation loan» is scheduled for December 18-19.

According to the IMF, Ukraine’s budget deficit for 2026–2027 is estimated at approximately $65 billion.