The European Union plans a "loan for repairs" for Ukraine, using frozen Russian assets, but the legality of the initiative needs to be assessed.

The European Union intends to implement a "loan for repairs" to financially support Ukraine, using the 140 billion euros from frozen Russian state assets. The plan also aims to attract additional funds from private bank accounts in member states to ensure long-term support. Although the initiative has been proposed, it does not yet have a solid legal basis, and the European Commission acknowledges that the feasibility of extending it to other assets has not been thoroughly assessed.

The majority of the frozen funds are held at Euroclear, which has requested guarantees to protect itself from possible legal actions by Russia. The loan would finance the development of Ukraine's defense industry and support the state budget, subject to certain conditions. EU leaders will discuss this plan at the summit next week, and finance ministers will examine funding options in November, ahead of the new multiannual budget in 2028.