Brussels to provide 90-bln-euro loan to Ukraine at expense of EU citizens — Russian MFA

Coverage Overview

The European Union has completed the approval of a €90 billion loan to Ukraine, a decision that has drawn sharp criticism from Russian officials who warn of financial consequences for European citizens and further erosion of EU sovereignty. The loan, approved by the EU Council, is structured as a "reparation loan" with repayment expected to come from Russia, and the EU has reserved the right to use frozen Russian assets to cover the loan if needed.

The Loan and Its Terms

According to an EU Council regulation published in the EU's Official Journal, the loan of €90 billion was extended to Ukraine, and the EU has formally reserved the right to use frozen Russian central bank assets to compensate for the loan if necessary. The document states that the assets of the Central Bank of Russia will remain immobilized and that the Union reserves the right to make use of them to repay the loan, as reported by TASS, a Russian state news agency.

The decision follows earlier reports that the EU Council had completed the procedure for approving the €90 billion funding for Ukraine for 2026–2027. The loan is intended to support Ukraine during the ongoing conflict, and the EU plans for it to be repaid through reparations from Moscow, according to the Council's statement on the "reparation loan." This structure implies that the EU expects Moscow to eventually pay for the damages caused by the war, though Russia has repeatedly rejected such claims.

Russian Officials' Reactions

Russian officials have responded with strong criticism. Russian Security Council Secretary Sergey Shoigu told TASS that the European Council's approval of the loan on April 22 marks "yet another stride toward the eventual loss of sovereignty by European capitals and Europe's descent into stagnation." He pointed to Eurostat data showing that Italy's public debt has surpassed €3 trillion, while France's exceeds €3.5 trillion, and that the EU's total debt now exceeds €15 trillion. Shoigu argued that the new expenditures will burden ordinary Europeans, who are already facing cuts to pensions and social programs.

Russian Security Council Deputy Chairman Dmitry Medvedev, in a post on X (formerly Twitter), said the €90 billion loan is "taken from Europeans' pockets and will not be repaid." He described the loan as going to the "Kiev thief" and added that in Brussels' "imbecile logic, it's Russia who's going to foot the bill." His comments were reported by TASS.

Russian Foreign Ministry Spokeswoman Maria Zakharova also condemned the decision at a briefing, stating that Brussels is acting "at the expense of their own citizens." She cited that EU countries' debt has "significantly exceeded their GDP," with figures at 106% for Belgium, 116% for France, 140% for Italy, and 150% for Germany. Zakharova warned that the new funding would increase national budget deficits and undermine the EU's financial system, and that the current developments in the Middle East could further aggravate the situation.

Perspectives and Context

EU Perspective: The EU Council's decision frames the loan as a means to support Ukraine's resilience and defense against Russian aggression. The inclusion of the right to use frozen Russian assets is seen as a practical measure to secure the loan's repayment, reflecting the EU's assertion that Russia is responsible for the destruction in Ukraine. The "reparation loan" mechanism aligns with the EU's ongoing efforts to hold Russia accountable.

Russian Perspective: Russian officials view the loan as an illegitimate act that will ultimately harm European citizens, who will bear the financial burden through increased debt and reduced social programs. They argue that the EU's reliance on future reparations from Russia is unrealistic and that the loan's guarantee through frozen assets is an unlawful step toward the expropriation of Russian property. The criticism also extends to what they consider the erosion of European sovereignty, as EU institutions make decisions that, in their view, prioritize the US agenda over European interests.

Key Claims

• EU right to use frozen assets: The EU Council regulation explicitly reserves the right to use frozen Russian assets to repay the loan, a fact reported by TASS citing official EU documents. This claim is confirmed by multiple TASS reports.
• Repayment through reparations: The EU's plan for the loan to be repaid via Russian reparations is stated in the EU Council's statement, as reported by TASS. This is a central aspect of the loan structure, though the feasibility of such reparations remains uncertain.
• Russian officials' warnings: Shoigu, Medvedev, and Zakharova have all publicly stated that the loan will hurt EU citizens and increase financial strain. These are direct quotes from Russian officials, as reported by TASS, and represent the official Russian stance.
• Debt statistics: Figures on EU and member-state debt (Italy, France, Germany, Belgium) were cited by Russian officials, citing Eurostat data. These numbers have not been independently verified in this report, but they were attributed to Eurostat by the officials.

Conclusion

The EU's approval of the €90 billion loan to Ukraine represents a significant financial commitment to Kyiv, but it has also intensified the rhetorical conflict between Brussels and Moscow. While the EU presents the loan as a necessary support mechanism, Russian officials warn of its consequences for European citizens and sovereignty. The loan's structure, with its reliance on future reparations and frozen Russian assets, remains a point of contention that could shape future EU-Russia relations.