By Jan Strupczewski

BRUSSELS (Reuters) -The European Union is discussing ways to use frozen Russian assets to underpin a so-called “reparation loan” to Ukraine to bolster its wartime finances and bypass the risk of a veto by Moscow-friendly Hungary, officials close to the project said.

Ukraine would only pay back the reparation loan once it receives compensation from Russia for damage inflicted during the war. The concept was floated by European Commission President Ursula von der Leyen last week, at a time President Donald Trump is curbing direct U.S.-funded military aid to Kyiv.

Von der Leyen said the loan could be arranged on the basis of cash balances associated with Russian central bank assets frozen in the West after Moscow’s invasion of Ukraine and would not involve seizing the a

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