EU's Innovative Financial Mechanism: Converting Frozen Russian Assets into €140 Billion Aid Package for Ukraine

Oct 23, 2025 08:54 pm CST

The European Union is developing a groundbreaking financial strategy to support Ukraine through a €140 billion "reparations loan" funded by frozen Russian assets. This complex mechanism, while avoiding direct seizure of Russian sovereign assets, aims to provide critical financial support to Ukraine while ensuring Russia ultimately bears responsibility for war damages. The proposal represents a significant evolution in how sanctioned assets can be leveraged to support nations under attack.