Ukraine renews proposal for loan from frozen Russian assets

Ukraine is ready to reopen discussions on a proposed ‘reparation loan’, Finance Minister Serhiy Marchenko told Euronews. The plan would allow around €210 billion in frozen Russian central bank assets to be used to provide an interest-free loan to Kyiv.

However, the proposal stalled in December when Belgium, the main custodian of the assets, opposed it.

EU leaders have since put forward an alternative in the form of a $90 billion loan financed through joint borrowing, which remains blocked by Slovakia and Hungary. The dispute is linked to issues surrounding the Druzhba pipeline.

Marchenko said he regarded reparations as the strongest possible signal of support and argued that Russia should be held responsible for the damage caused in Ukraine. He also expressed hope that Hungary would eventually lift its veto, allowing Ukraine to begin drawing on the funds in the spring.

(est)