@europe_pulse: Von der Leyen Pushes Reparations Loan Backed by Moscow’s Immobilized Funds #security #safety #politics #eu #europe #news #russia #putin #nato #warinukraine #europeancommission #ursulavonderleyen EU proposes reparations loan based on frozen Russian assets to fund Ukraine’s recovery. In Brussels today, European Commission President Ursula von der Leyen unveiled a new plan to leverage immobilized Russian assets for Ukraine’s long-term support and reconstruction. Speaking alongside NATO Secretary-General Mark Rutte, von der Leyen stressed that after more than three years of war, Ukraine has managed to hold its ground, with Russia capturing just one percent of occupied Ukrainian territory over the past thousand days. Von der Leyen said Moscow is paying a heavy price for its invasion, citing more than 250,000 Russian battlefield deaths, soaring inflation above 10 percent, and interest rates set at 17 percent. She warned that the Kremlin’s GDP, which grew 4.3 percent in 2024, is now projected to shrink sharply to 0.9 percent in 2025. To increase pressure, the EU will push forward with a fresh sanctions package that includes a ban on Russian liquefied natural gas imports. At the same time, the Commission is advancing new mechanisms to guarantee Ukraine’s military and economic resilience. A central proposal is a “reparations loan” based on frozen Russian state assets held in Europe. Von der Leyen underlined that this would not mean seizing the funds outright. Instead, Ukraine would receive a loan disbursed in tranches, with repayment contingent on whether Russia pays reparations in the future. Crucially, part of the financing would be used to boost Europe’s defense industry through procurement inside the EU. “This way, the perpetrator is ultimately held responsible, and Ukraine receives predictable structural support,” she said. She also confirmed that a €2 billion drone procurement deal is already agreed with Kyiv, aimed at scaling up Ukraine’s battlefield capabilities while strengthening European technological know-how. NATO chief Mark Rutte fully endorsed the initiative, praising EU–NATO coordination. He highlighted the “drone wall” project under development to protect Europe’s eastern flank from Russian incursions. Recent drone incidents in Poland, Estonia, and Denmark underscore the urgency, he said, calling Russia’s actions “reckless and unacceptable.” Rutte emphasized that NATO and the EU must complement one another: NATO sets capability standards while the EU mobilizes financial power and industrial capacity. Both leaders insisted that Ukraine remains Europe’s “first line of defense,” making long-term support indispensable. Tomorrow’s informal European Council in Copenhagen will examine the scoping paper on defense readiness, with a full EU–NATO roadmap to be unveiled within two weeks. For Brussels and NATO alike, frozen Russian assets are now at the center of a strategy to both weaken Moscow and secure Ukraine’s future. *Subscribe to Europe Pulse* Stay updated with the latest news from Europe.

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Tuesday 30 September 2025 21:04:45 GMT