To bolster Ukraine’s “financial resilience” amidst the ongoing Russian war of aggression, the European Commission today proposes two solutions to address Ukraine’s financing needs for 2026-2027: EU borrowing and a Reparations Loan. “These two solutions are underpinned by a comprehensive set of five legal proposals”, according to a statement from Brussels. “With Russia continuing to show no sign of willingness to commit to a just and sustainable peace, the strain on Ukraine’s resources continues to grow, making sustained EU support all the more vital”. With these legal proposals, the Commission puts forward two possible solutions: first of all, EU borrowing, which would rely on the EU budget, and a Reparations Loan, which would empower the Commission to borrow cash balances from EU financial institutions holding immobilised Russian Central Bank assets. This solution has long been discussed and continues to raise a number of concerns. The solutions “reflect the EU’s commitment to supporting Ukraine not only in defending its sovereignty and maintaining state functions, but also as a strategic investment in Europe’s security”. These proposals put in place a number of safeguards to protect Member States and financial institutions from possible retaliation measures within Russia, and from unlawful expropriations outside Russia, notably in Russia-friendly jurisdictions.