The European Commission is exploring options such as joint debt and bilateral grants to fill Ukraine’s funding gap. These options are alternatives to the proposed €140B reparations loan. Details will be outlined in a specific EC document that will be shared with European capitals in the upcoming weeks. These measures will complement the existing reparations loan initiative, which involves utilizing frozen Russian assets held in Belgium.
A reparations loan remains the EC’s preferred option to support Ukraine, despite Belgium’s opposition that was raised at the October EU leaders’ summit. Many EU countries, including Germany and the Baltic states, back this idea. Meanwhile, support is growing in Norway for using its €1.8T sovereign wealth fund to help the EU provide a reparations loan for Ukraine. The initiative has already gained backing from five Norwegian political parties, including three in Prime Minister Jonas Gahr Støre’s coalition. Amid ongoing debate in the EU, Støre has ordered a review of Norway’s potential participation in the reparations loan mechanism.