US EditionA ‘Drone Wall’ and Ukraine Pact: the EU Ups Its Ambitions on Defense
The European Commission plans an €18 billion loan to Ukraine funded by profits from frozen Russian assets, with EU countries sharing the financial risk collectively.
- On September 10, 2025, the head of the European Commission proposed a reparations loan for Ukraine financed through the cash holdings linked to Russian assets frozen within Europe.
- This initiative follows the 2024 G7 agreement to channel €45 billion in profits derived from investing immobilized Russian assets toward Ukraine’s support without touching the principal funds.
- Von der Leyen also unveiled plans for a ‘drone wall’ to protect all 27 EU member states from Russian aerial incursions and to form a drone alliance with Ukraine as part of wider defense measures.
- She explained that the principal amount of the assets would remain intact and emphasized that the financial risk should be borne collectively by EU member states, while supporting Ukraine through repayable loans contingent on receiving reparations from Russia.
- The move aims to bolster Ukraine’s defense and reconstruction amid ongoing war costs and funding uncertainties, signaling increased European commitment and willingness to use immobilized Russian funds strategically.
14 Articles
14 Articles
To finance Ukraine's war effort as a matter of urgency, the European Commission is proposing a "reparation loan" with the interests of Russian assets "without touching the assets themselves".
Ursula von der LeyenProposes Reparations Loan for Ukraine Using Frozen Russian Assets
The head of the European Commission, Ursula von der Leyen, proposed a new way to finance Ukraine’s defense against Russia using the cash from frozen Russian assets in Europe. She emphasized that the core assets would remain untouched and that EU countries would share the risks of this financing. Von der Leyen stated, “This is […] The post Ursula von der LeyenProposes Reparations Loan for Ukraine Using Frozen Russian Assets appeared first on Mode…
The EU does not plan to confiscate frozen Russian assets, instead they can be used as collateral to provide Ukraine with “repair loans”, but this mechanism still needs to be developed.
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