EU countries will each have to secure guarantees worth billions of euros for the loan to Ukraine funded by frozen Russian assets, Politico’s Brussels edition reports.
The amounts each country will need to provide are calculated based on their GDP, following the same method used to determine their contributions to the EU’s common budget.
For Bulgaria, the guarantee for the Ukrainian loan will amount to €1.2 billion.
Germany will contribute the most — €52 billion, followed by France with €34 billion.
The European Commission presented a legislative proposal last week to provide up to €210 billion in loans to Ukraine over five years. The frozen Russian assets — most of which are held by the financial company Euroclear in Brussels — will be used as the basis for the loan.
Belgium opposes the use of the Russian assets and is demanding financial guarantees from the other EU countries in case Ukraine is unable to repay the loan.
According to the EC document, the total amounts for each country could increase if Kremlin-friendly states such as Hungary decide not to join the initiative. The guarantees could be reduced if non-EU countries like Norway also agree to participate.
The proposed reparations loan for Ukraine allocates €115 billion to finance Ukraine’s defense industry over a five-year period.
Another €50 billion will cover Kyiv’s budgetary needs. The remaining €45 billion from the total package will repay a G7 loan granted to Ukraine last year.
The final decision on the loan must be taken at the EU leaders’ summit next week in Brussels.