Finance
ECB says EU use of Russian assets for Ukraine loans is a stretch
Published by Global Banking and Finance Review
Posted on December 3, 2025
1 min readLast updated: January 20, 2026
Quick Summary
The EU's plan to use Russian assets for Ukraine loans faces legal and financial scrutiny, warns ECB's Lagarde.
ECB Questions EU's Use of Russian Assets for Ukraine Loans
FRANKFURT, Dec 3 (Reuters) - The European Commission's proposal to use Russian central bank assets to extend reparations loans to Ukraine is a stretch from a legal and financial point of view, European Central Bank President Christine Lagarde said on Wednesday.
The European Commission presented EU member states with two options to give Ukraine 90 billion euros ($105 billion) for the next two years - use Russian frozen assets or borrow money on international markets.
Lagarde said the former option was "something that is stretched" and that "hopefully is in compliance with international law (and)...financial stability".
She said it was the ECB's job to flag these risks because a key cog in the European financial system, the clearing house Euroclear where the Russian assets are parked, and the region's very reputation were at stake.
(Reporting by Francesco Canepa; Editing by Andrew Cawthorne and Ed Osmond)
Key Takeaways
- •The EU proposes using Russian assets for Ukraine loans.
- •ECB's Lagarde highlights legal and financial concerns.
- •Two options: use frozen assets or borrow internationally.
- •Euroclear's role in the financial system is crucial.
- •Compliance with international law is a major concern.
Frequently Asked Questions about ECB says EU use of Russian assets for Ukraine loans is a stretch
1What is the European Central Bank?
The European Central Bank (ECB) is the central bank for the euro and administers monetary policy within the Eurozone, aiming to maintain price stability and oversee the financial system.
2What are frozen assets?
Frozen assets are financial assets that have been restricted from being accessed or transferred, often due to legal or regulatory actions, such as sanctions against a country or entity.
3What is financial stability?
Financial stability refers to a condition where the financial system operates effectively, with institutions able to manage risks, maintain liquidity, and support economic growth without significant disruptions.
4What are reparations loans?
Reparations loans are financial compensations provided to a country or group for damages or injustices suffered, often following conflicts or historical grievances.
