Major European powers have voiced support for a proposal to use frozen Russian assets as collateral for an enormous loan to Ukraine to fund its reconstruction.

The so-called Reparations Loan, first outlined by European Commission President Ursula von der Leyen in mid-September, would leverage Russian funds frozen in European banks to back a 140 billion euro ($164.4bn) loan for Ukraine guaranteed either by the European Union’s (EU) next long-term budget or EU member states. Under the plan, Kyiv would not need to repay the loan until Russia covers the costs of war reparations.

While some EU states have raised concerns over the legality and risk-sharing aspects of the scheme, support appeared to build on Wednesday at an EU summit in Denmark, Copenhagen. Finnish Prime Minister Petteri Orpo

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