The European Commission has announced a major new plan to support Ukraine's long-term finances. The groundbreaking idea is to use profits from frozen Russian state assets. The goal is to provide Ukraine with up to 90 billion euros between 2026 and 2028. This money would cover most of the country's expected budget needs. The proposal represents a significant step in Europe's strategy, aiming to strengthen Ukraine's defense and recovery while directly affecting Russia's ability to fund its war.
European Commission President Ursula von der Leyen explained the dual purpose of the plan. She stated it would both increase the financial cost of Russia's war and encourage Russia to negotiate for peace. The proposal suggests two main options. The first is a large loan from EU financial markets. The second, more direct option is a "reparations loan" guaranteed by the profits from the frozen Russian assets. These assets have been held mainly in Belgium's Euroclear system since Russia's 2022 invasion.
However, the plan faces legal and political challenges. Belgium, where Euroclear is based, has expressed concerns about financial risks and possible legal problems. All 27 EU member states must agree unanimously for the plan to go ahead, which will require complex negotiations. President von der Leyen emphasized that the EU would cover about two-thirds of Ukraine's financing needs, with international partners providing the rest.
In a related development, Cyprus, which will lead the EU Council in early 2026, is showing stronger support for Ukraine. Cypriot President Nikos Christodoulides visited Kyiv with a list of 19 proposals. These include plans to hold a major EU meeting in Ukraine and to focus on the issue of Ukrainian children taken to Russia. The discussions also covered how to enforce sanctions more effectively.
Together, these actions show Europe is moving towards more permanent support systems for Ukraine, rather than temporary aid. If successful, the plan to use Russian assets would create a powerful new precedent, using an aggressor's own resources to help the victim. The next challenge is to turn this bold proposal into agreed legal action.