Von der Leyen: Russia must pay for Ukraine’s recovery
The European Commission has called for another package of sanctions against Russia with President Ursula von der Leyen saying: “This is Russia’s war, and it is Russia that should pay.”
During her 2025 ‘State of the Union’ address, von der Leyen emphasised that European taxpayers should not be the only ones bearing the brunt of Russia’s war in Ukraine.
She asserted that “no one had contributed as much as Europe,” noting the Union has provided nearly €170bn (£147bn) in military and financial aid so far to Ukraine.
In her speech, she suggested that the EU should propose using frozen Russian assets to issue a “reparations loan” as a new way to finance Ukraine’s war effort.
She explained: “The assets themselves will not be touched. And the risk will have to be carried collectively. Ukraine will only pay back the loan once Russia pays for the reparations.”
Last month, von der Leyen and other European leaders attended a White House meeting with Ukrainian leader Volodymyr Zelensky and US President Donald Trump to present a united front.
EU-US sanctions
Von der Leyen also addressed Trump’s tariff threats, which came in response to the EU’s regulations on US tech companies.
This followed Trump’s threat last month to penalise “all countries with Digital Taxes, Legislation, Rules, or Regulations.”
She stated: “I want to be crystal clear on one point: Whether on environmental or digital regulation. We set our own standards. We set our own regulations. Europe will always decide for itself.”
The EU President said she does not believe in tariffs, describing them as a form of taxation.
After months of a standoff between two of the world’s largest economic powers, Trump declared a “big win” with a trade deal with the EU in July. US tariffs on the EU have been reduced from 30 to 15 per cent on a range of products, but a 50 per cent tariff remains on steel and aluminium.
“The deal provides crucial stability in our relations with the US at a time of grave global insecurity,” Von der Leyen stated. However, she added, “80 per cent of our trade is with countries other than the US.”
Response to Israel
Following Israel’s attack against Hamas leadership in the capital of Qatar, which has been a key mediator in Gaza ceasefire talks, von der Leyen has vowed to pause bilateral payments to Israel.
“What is happening in Gaza has shaken the conscience of the world,” she stated.
She focused her speech on the “actions and statements by the ‘most extremist ministers’ of the Israeli government” as she vowed to sanction those the EU
She told the MEPs that the EU will put its “bilateral support to Israel on hold”, but she noted that she is “a long-standing friend of the people of Israel”.
“What is happening in Gaza is unacceptable,” von der Leyen stated in Strasbourg, but added, “in the longer term, the only realistic peace plan is one based on two states”.