European Commission President Ursula von der Leyen has outlined a series of backup plans to keep financial support flowing to Ukraine, as uncertainty grows around a proposed reparations linked loan tied to Russia’s frozen central bank assets. With Belgium showing resistance to the scheme, Brussels is preparing alternative solutions to ensure Kyiv continues to receive both budgetary and military assistance.
The original plan involves issuing a loan to Ukraine that would be repaid only if Russia eventually provides reparations for the destruction caused its invasion. The proposal aims to use the future value of Moscow’s immobilised assets as a financial guarantee. The plan has been seen as an innovative way to sustain long term aid without placing immediate strain on European Union budgets.
However, the arrangement requires unanimous backing from all member states, and Belgium which hosts a large share of Russia’s frozen assets has signalled hesitation. Its position has created uncertainty, prompting von der Leyen to present a series of fallback options as time is running out to secure funding for Ukraine.
Speaking during a plenary session of the European Parliament on Thursday morning, the Commission president made it clear that the reparations linked loan remains the preferred option. She stressed that it offers a fair and responsible way to support Ukraine while placing the financial burden on Russia, the aggressor in the conflict.
Even so, she acknowledged that other pathways must be ready. One option involves raising debt directly from the financial markets using the European Union budget as a guarantee. This would allow Brussels to borrow collectively and distribute funds to Ukraine without relying on the stalled reparations linked loan.
A second alternative involves bilateral agreements among individual member states. Under this approach, national governments could issue their own loans to support Ukraine while coordinating closely with the European Union to ensure consistent funding. This method has been used in past crises and could be activated quickly if needed.
Von der Leyen emphasised that these possibilities are not replacements for the current plan but rather insurance in case political obstacles block progress. She reiterated that the European Union has a responsibility to deliver stable and reliable aid to Ukraine, especially as the country continues to face intense military pressure and a strained national budget.
The Commission president also underlined that whatever solution is chosen, the goal remains the same. Europe must maintain its commitment to Ukraine and prevent any interruptions in support. She said the European Union’s credibility is tied to its ability to respond decisively and remain united.
As discussions continue, the coming weeks will be critical. The reparations loan still has strong backing across Brussels, but with Belgium standing firm in its reservations, the European Union may soon need to act on one of von der Leyen’s alternative strategies.
