IMF assessment: Kyiv needs €137 billion by 2027
European Commission President Ursula von der Leyen presented proposals in Brussels to provide assistance to Ukraine in 2026 and 2027 and guarantee its economic stability. According to IMF estimates, Ukraine will need 137 billion euros in the next two years to ensure the functioning of the state mechanism and continue its heroic defense.
The European Commission proposes to cover two-thirds of this need, that is, 90 billion euros, and the rest should be provided by international partners. Von der Leyen emphasized that Europe will remain Ukraine's strongest and most reliable partner.
Two legal paths: debt or reimbursable credit
The European Commission offers member states two different financial mechanisms:
- EU Debt (unanimously): This proposal involves attracting capital from capital markets under EU budget guarantees and providing it to Ukraine as a regular loan. For such a decision to be made, the unanimous approval of all EU member states is required.
- Reparation Loan (By majority vote): This option provides for the provision of a reparation loan at the expense of assets of the Central Bank of Russia frozen in the EU. Von der Leyen explained that the European Commission will withdraw the funds from the accounts and give them to Ukraine as a loan, which Ukraine will have to repay only if Russia pays the reparations.
Belgium's firm objection
Belgium strongly opposes the second proposal, as the Euroclear depository, which holds Russia's blocked assets of approximately €185 billion, is located under its jurisdiction.
Valdis Dombrovskis, a member of the EU Economic Commission, emphasized that the proposals are legally sound, fully comply with international law, and respect the principle of sovereign immunity.
Upcoming discussions
The European Commission's proposals will be considered at the EU Summit on December 18-19. If one of these paths is adopted, the legislative process for the allocation of funds may be completed at the beginning of 2026.
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