European Commission plans ‘reparations loan’ to Ukraine using frozen Russian assets

Leaders focus on bolstering Ukraine's finances as US-Russia talks to end war make little progress

The European Commission will move ahead with controversial plans to fund Ukraine with a loan based on Russia's frozen assets, but in a concession to concerns raised by Belgium, which hosts most of the assets, the EU executive has also proposed another option: an EU loan based on common borrowing.

The European Commission president, Ursula von der Leyen, said on Wednesday the two proposals would ensure Ukraine has the means to defend [itself] and take forward peace negotiations from a position of strength".