Lesia Orobets, together with , discusses a key event taking place on December 18 in Brussels, where the continuation of funding for Ukraine’s military efforts will be the main topic on the agenda.
The most realistic financing option currently under consideration is a so-called reparations loan backed by frozen Russian assets. With more than $200 billion of immobilized Russian Central Bank assets currently held in Europe, this loan would be sufficient to bankroll Ukraine’s defense for the coming two years, with Russian reparations set to cover repayments.
European officials are also mulling an alternative format that would involve a joint debt guaranteed by the EU budget. This approach would generate around $100 billion over the coming two years. However, while the reparation loan would place the financial burden on Russia, this approach would introduce new demands on the already overstretched budgets of individual EU member states.
“Using frozen Russian funds as security for a major Ukrainian loan would send a message to Moscow about Kyiv’s ability to continue defending itself for years to come.”
If Europe does not support Ukraine now, it will have to spend several times more to contain Russia in the future.
Read more in the Atlantic Council article.