Ukraine’s Foreign Minister Andriy Sybiha on Tuesday hailed a proposed loan to Ukraine backed by frozen Russian assets as “urgent and critical” as talks in Brussels continued to finalize details of the financing arrangement ahead of a crunch summit later this week.
The plan – known as the reparations loan because Ukraine would not repay it unless it received financial compensation from Russia after the war – has been stuck in limbo amid opposition from Belgium.
On Tuesday, Sybiha laid out five reasons why “the time has come to allow Russia’s frozen assets to be used fully to support Ukraine” in a post on X.
“A matter of justice”
Firstly, he argued, the step would counter Russian President Vladimir Putin’s calculation that Europe is “divided and weak.”
“Instead, this step will thwart his plans and force him to recalculate,” Syhiba said.
He added that unlocking the funds would reinforce European sovereignty, independence and cohesion, sending a clear message that “threatening Europe’s long-term peace and security by attacking a sovereign European country comes at a cost.”
Sybiha also emphasized that the move would provide sustained support for Ukraine, boost self-reliance, and bolster national morale at a critical moment.
He described the loan as “a matter of justice,” saying “it is first and foremost the aggressor who must pay for the damage it has caused, not the European taxpayers. Nothing is more fair than that.”
The foreign minister further insisted that using Russia’s frozen funds would not hinder peace negotiations.
“Rather, it will strengthen our position at the negotiating table and stimulate the peace process by increasing pressure on Russia and changing Moscow’s calculations,” Sybiha said.
Finally, he dismissed Russian warnings that broader use of frozen assets could destabilize the financial system, violate rule of law or prompt retaliation or “apocalyptic” consequences.
“In reality, none of these threats are credible and most of these fears are completely unfounded. Moscow simply sells fear, as it usually does before major steps to counter its aggression,” he wrote.
Sybiha highlighted that compensation from aggressors is a core principle of international law, backed by UN General Assembly resolutions, and said the proposed mechanisms are legally and morally sound.
The call came ahead of a key European Commission summit on Dec. 18–19, where EU leaders are hoping to come to an agreement on the plan.
European ambassadors met in Brussels on Monday and Tuesday to hammer out the details of the initiative before the all-important summit. They will meet again on Wednesday morning.
What is the reparations loan?
The reparations loan plan entails using up to €165 billion ($194bn) of Russia’s €210 billion ($247bn) frozen assets to support Ukraine over 2026–2027.
European Commission President Ursula von der Leyen said on Dec. 5 that the EU plans to cover €90 billion ($105 billion) of Ukraine’s estimated €135 billion ($161 billion) financing needs for 2026-27 through new borrowing and the loan.
The proposal relies on immobilized Russian sovereign assets held by Belgium-based financial depository Euroclear, which faces ongoing legal claims from Moscow seeking $230 billion in damages, according to Russia’s central bank on Monday.
Russia has warned that using the assets would constitute theft and has threatened retaliation against European investors.
Belgium has demanded a strong backstop to mitigate the legal risks, stalling a final agreement. The US has reportedly urged some European governments to push back against the proposal.
The bloc moved closer to making the deal a reality on Dec.12, when a majority of European countries agreed to indefinitely immobilize the frozen assets. This prevented pro-Russian members Hungary and Slovakia from vetoing future immobilization, which was previously voted on every six months.
German Chancellor Friedrich Merz on Monday warned that failing to progress the loan would leave the EU’s ability to act “severely damaged”, showing the world that “we are incapable of standing together and acting at such a crucial moment in our history.”