Vice-President of the European Commission Kaja Kallas voiced support for a €140 billion ($162 billion) EU reparations loan to Ukraine backed by frozen Russian assets on Wednesday, following a meeting with EU foreign ministers.
The loan, which would see Russian assets immobilized in Europe converted to EU bonds and used to fund Ukraine’s war effort, has been in limbo for weeks – largely due to Belgian Prime Minister Bart De Wever’s concerns that Belgium could be held responsible in case of any legal challenge. The majority of the frozen assets are held by Belgian bank Euroclear.
At a press conference, Kallas said that the reparations loan is the “most clear-cut” way for the EU to fulfill its commitment to financially support Ukraine through 2027.
“It would send the strongest message to Moscow that it cannot wait us out, and we need to make this decision fast,” she said of the reparations loan, which is so-named because Ukraine would not have to repay it until it received reparations from Russia after the end of the war.
Asked by a reporter whether Belgium was at fault for delaying the loan, Kallas said that Belgium was only representing its interests and voicing “legitimate” concerns.
“If there are risks, then we need to also see how we can, you know, share those risks. And everybody around the table agreed that, of course, they are there in solidarity with Belgium when Belgium needs this support.”
Kallas also revived calls for an immediate, unconditional ceasefire, which she said must be the first step to ending the war – but that the EU currently sees “zero indications” that Russia is ready to accept one.
“Russia is not winding down its military machine but ramping it up. We still need to get from a situation where Russia pretends to negotiate to a situation where they need to negotiate,” she said.
As the Kremlin considers the revised draft of a US-backed peace plan, Kallas also delivered a pointed reminder that the “the threat posed by Russia extends beyond Ukraine,” so Europe must be involved in decisions surrounding the end of Russia’s war.
“That is also why decisions concerning the EU and NATO can be made only by the members of the European Union and NATO, and nobody else,” Kallas said.
When the details of the US plan, drafted by US President Donald Trump’s envoy Steve Witkoff, leaked to the press last week, it contained conditions which would have directly impacted the EU and NATO – for example, that Ukraine agree never to become a NATO member.
EU and Ukrainian officials scrambled to alleviate the worst elements, meeting US officials in Geneva to negotiate a less unfavorable deal for Ukraine and its allies.
The White House, in turn, has tried to downplay any intentions of imposing the plan’s original 28 points on Kyiv, as opposition to the “pro-Russian, one-sided ‘peace’ deal” grows in Washington and abroad. A senior European diplomat told the Kyiv Post on Tuesday that nothing about the process looked “disciplined, coherent, or aligned with NATO security.”