Von der Leyen: Three options for financial support to Ukraine

2025-11-17 21:50:00, Kosova & Bota CNA

European Commission President Ursula von der Leyen, in a letter sent to European Union governments on November 17, said there are three options to meet Ukraine's financial needs, including a loan using frozen Russian assets, but a combination of all three options is also possible.

Last month, EU leaders agreed to meet Ukraine's "urgent financial needs" for the next two years, but did not approve a plan to use frozen Russian assets to finance a large loan to Kiev, due to concerns raised by Belgium.

The leaders of all EU countries, except Hungary, asked the EC to propose options for financial support for Ukraine, a country that has been fighting with Russia since 2022.

"We have identified three main options, namely support financed by member states through grants, a limited liability loan financed by the European Union by borrowing on the financial markets, or a limited liability loan linked to cash balances of frozen assets," von der Leyen said in the letter, Reuters reports.

In an options document attached to the letter, Von der Leyen added that "the three options are not mutually exclusive. They can be combined or implemented one after the other."

"Given the urgency of the situation, the varying complexity of the options, and the need to start distributions by the second quarter of 2026, any option chosen may be designed as transitional and time-limited," the document states.

As an example, the document mentions that the option of financial support, without the possibility of repayment, financed by member states and the option of borrowing by the EU on financial markets "could serve as temporary solutions" until the bloc's new long-term budget, which comes into force in 2028, is approved, and could serve as a guarantee for EU-financed loans.

The document estimates that Ukraine's financial needs for 2026-2027 amount to 135.7 billion euros. The EC's proposal to use frozen Russian assets would produce a loan of 140 billion euros, covering Kiev's needs.

If the grant option is chosen, Ukraine would need at least 90 billion euros from EU member states over the next two years, the document states.

In her letter, Von der Leyen told European capitals that a quick decision is needed.

"It will now be key to quickly reach a clear commitment on how to ensure that the necessary funding for Ukraine is approved at the next European Council meeting in December," she said.

Of the 135.7 billion euros needed over two years, Ukraine would need 83.4 billion euros for the military alone and 52.3 billion for other expenses, according to the document.

Needs will be greatest in 2026, reaching 71.7 billion euros, and smallest in 2027, 64 billion euros, according to the document./ Rel