Russian Assets: 'A 'Reparation Loan' to Ukraine Would Be an Advance on the Kremlin's Obligation to Pay War Reparations'

U.S. President Donald Trump is giving every sign that he wants to end the war in Ukraine. At the risk of no longer funding weapons for Kiev. The Europeans, for their part, know that Ukraine will still need to defend itself, and that they risk having to bear the burden alone. How could they do so when they need to strengthen their own defenses and most of them are experiencing budgetary difficulties?

There is, however, one option: using the $300 billion [about €256 billion] of frozen Russian assets, of which about €210 billion are in the European Union. It is true that outright confiscation is politically impossible, as many countries, including France, have legal reservations. They also fear destabilization of the euro.

Fortunately, another solution exists, and it's legally sound: a "reparations loan." This involves using Russia's assets against itself by lending them to Ukraine. Moscow would only recover its funds if it paid reparations. This loan would, in effect, constitute an advance on the Kremlin's obligation to pay war damages.

This idea is based on the UN General Assembly 's call for reparations from Russia. In response, representatives of more than 50 states, including France, as well as the European Union, have launched a proposal for a claims commission for Ukraine. Legal experts agree that Russia will have to pay war reparations. But it will take years for the commission to issue its decision, while Kyiv needs cash now. A reparations loan would bridge this gap.

How? First, European and other willing countries would ask the current custodians of the assets, including Belgium's Euroclear , to transfer the funds to a special legal structure. The funds would be used for a reparations loan to Ukraine. Kyiv would only have to repay this loan if Moscow paid war reparations. The United States would be invited to join the arrangement, but its participation is not crucial, as it has only frozen about $5 billion of Russian assets.

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