Politico: EU to pay €3 billion annual interest on its loan to Ukraine starting 2028

Starting in 2028, EU countries will pay €3 billion in annual interest on a loan provided to Kiev, Politico reported, citing sources in the European Commission.

"EU taxpayers will be forced to pay €3 billion in annual interest on the loan as part of a plan to increase the overall debt to finance Ukraine's defense," the publication stated.

Politico notes that interest payments on the loan will amount to approximately €1 billion in 2027 and approximately €3 billion annually from 2028. The funds will be allocated from the seven-year EU budget, largely funded by contributions from EU member states.

Earlier, European Commission President Ursula von der Leyen stated that participants at the December 18-19 EU summit failed to agree on the expropriation of frozen Russian assets under the guise of a "reparations loan" to Kiev. Instead, a decision was made to allocate €90 billion to Ukraine at zero interest for the next two years. Hungary, the Czech Republic, and Slovakia refused to participate in the EU financing for Ukraine.