Ukraine is pushing its European allies to take a political decision to release a proposed $163-billion loan based on frozen Russian state assets next month, as it frets over a gaping hole in the 2026 budget and fallout from an unfolding corruption scandal.
European leaders failed to agree on the "Reparations Loan" for Kyiv last month and will discuss it again at a summit on 18 December, with Ukraine expected to need its first big injections of financial support from the second quarter of 2026.
A senior official in President Volodymyr Zelenskyy's administration told Reuters the summit looked to be the last chance for Europe this year to agree to provide the loan for Ukraine, a move Russia said would elicit a "painful response".
"We don't expect all technical details to be finalised by that time, but the architecture for issuing the loan must be agreed," Iryna Mudra, a top legal adviser in Zelenskyy's administration, said in an interview.
She said Ukraine expected its European allies to define the structure and governance through which the funds would be provided. It was also vital for Ukraine to be involved in decisions on how to allocate and prioritise the funds, she said.
"Without Ukraine's direct involvement, assistance risks becoming ineffective only because we know the real needs on the ground, but the decision should be taken together with our partners, definitely," she said.
Wartime budget
Economists warn Ukraine could exhaust its funds in early 2026 without fresh European support, particularly as the prospect of direct U.S. aid under President Donald Trump appears uncertain.
EU leaders agreed last month to meet Ukraine's "pressing financial needs" for the next two years but stopped short of endorsing a plan to use frozen Russian assets to fund a giant loan to Kyiv because of concerns raised by Belgium.
On Monday, European Commission President Ursula von der Leyen told European governments in a letter seen by Reuters that there were three options to finance Ukraine and that a combination of them was also possible.
Apart from the loan, the options include European Union countries providing grants and the bloc borrowing on markets.
The document estimated that Ukraine's remaining needs for 2026-2027 amounted to €135.7 billion ($157.37 billion).
The Commission's proposal to use frozen Russian assets would produce a loan of €140 billion, covering those needs.
Corruption Scandal
Overshadowing Kyiv's relations with foreign partners is a corruption scandal that has already ensnared two cabinet ministers and spurred calls from some lawmakers for the entire cabinet to be dismissed.
Though they are not directly implicated, the allegations of a $100-million kickback scheme in the energy sector alleged by Ukraine's anti-corruption agencies have shaken faith in the government and pose a political challenge to Zelenskyy.
Neither of the ministers has been named as a suspect, and both have denied wrongdoing in the scandal.
Mudra said Zelenskyy's response to the scandal had been immediate and strong, that the case underscored the independence of Ukraine's anti-corruption agencies championed by the EU and that it would ultimately be resolved by the judiciary.
U.S. and Pakistani leaders forecast a Sunday signing of a long-elusive framework agreement to end fighting between the United States and Iran, but Teh...
The International Monetary Fund (IMF) has urged Georgia to implement reforms to tackle youth unemployment. Nearly 30 per cent of people aged 15-24 ar...
North Korea said on Sunday, 14 June, that denuclearisation is a matter that is irreversibly terminated, in a condemnation of recent nuclear deterren...
British Prime Minister Sir Keir Starmer has pledged to publish the UK government's long-awaited Defence Investment Plan ahead of next month's NATO sum...
British Prime Minister Sir Keir Starmer says British armed forces intercepted a Russian shadow fleet oil tanker early on Sunday, as it attempted to p...
The International Monetary Fund (IMF) has urged Georgia to implement reforms to tackle youth unemployment. Nearly 30 per cent of people aged 15-24 are without a job in the country, according to World Bank data.
British Prime Minister Sir Keir Starmer has pledged to publish the UK government's long-awaited Defence Investment Plan ahead of next month's NATO summit in Ankara, following growing pressure over the UK's military spending commitments.
Hundreds of protesters have torn down fences surrounding a planned luxury development site in Albania, as public anger continues to mount over construction in environmentally sensitive areas.
George Russell continued Mercedes's dominant qualifying form by securing pole position for the Barcelona-Catalunya Grand Prix, while Lewis Hamilton ensured an all British front row with second place for Ferrari.
Pakistan has warned that any attempt by India to block or significantly reduce river flows under the Indus Waters Treaty could have “far-reaching consequences”, after India's water minister said New Delhi was working to ensure that “not a single drop” of water reaches Pakistan in the coming years.
SpaceX made a historic entrance into the Nasdaq on Friday, surging over 20% in its first day of trading and lifting its valuation to more than $2 trillion. Investors flocked to the world’s largest IPO, betting on Elon Musk’s sprawling empire spanning rockets, AI and beyond.
Armenia has every right to choose Europe. But Europe’s support for Armenia’s direction should not become automatic approval of its political process.
U.S. President Donald Trump has said a peace agreement with Iran is scheduled to be signed on Sunday in a post on social media, despite Tehran's Foreign Ministry spokesperson Esmaeil Baghaei saying no deal would be approved this weekend.
Japan’s birth rate and fertility levels have fallen to their lowest levels on record, highlighting the country’s worsening demographic crisis as fewer people marry and have children.
North Korea said on Sunday, 14 June, that denuclearisation is a matter that is irreversibly terminated, in a condemnation of recent nuclear deterrence talks between the U.S. and South Korea.
British Prime Minister Sir Keir Starmer has pledged to publish the UK government's long-awaited Defence Investment Plan ahead of next month's NATO summit in Ankara, following growing pressure over the UK's military spending commitments.
British Prime Minister Sir Keir Starmer says British armed forces intercepted a Russian shadow fleet oil tanker early on Sunday, as it attempted to pass through the English Channel.
Hundreds of protesters have torn down fences surrounding a planned luxury development site in Albania, as public anger continues to mount over construction in environmentally sensitive areas.
George Russell continued Mercedes's dominant qualifying form by securing pole position for the Barcelona-Catalunya Grand Prix, while Lewis Hamilton ensured an all British front row with second place for Ferrari.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment