EU Considers Loaning Ukraine $162 Billion from Frozen Russian Assets
The European Commission proposes a complex financial scheme to utilize frozen Russian assets for funding Ukraine's ongoing battle against Russia.
BRUSSELS, Belgium: EU leaders have taken an initial step towards utilizing the frozen Russian assets to provide a substantial loan for Ukraine.
Despite marathon talks in Brussels that failed to yield a definitive approval, the European Commission has presented a plan aimed at facilitating a 140 billion euro ($162 billion) aid package over the next few years to Kyiv.
The 'reparation loan' is seen as crucial for sustaining Ukraine's fight against Russia and holding Moscow accountable.
However, this proposal poses significant legal and political challenges.
The European Commission has suggested an intricate method of borrowing funds from Euroclear that have already matured into cash.
These funds would then be loaned to Ukraine with the understanding that repayment will depend on Russia compensating for the damages caused by its war.
The EU's 27 member states are expected to ensure repayment if they eventually decide that Russia should not reclaim the assets without paying reparations.
This move has been met with resistance, particularly from Belgium, which fears potential legal challenges from Russia.
Belgian Prime Minister Bart De Wever insists on guarantees from other EU countries and demands that several member states begin tapping into Russian assets frozen in their territories.
Thursday's summit concluded with a watered-down text, avoiding direct mention of the loan but inviting the commission to present 'options for financial support' for Ukraine in 2026 and 2027.
The exact details of this proposal will likely be subject to extensive negotiations, including the conditions under which these funds can be spent by Kyiv.
France advocates for the majority of funds to be allocated towards purchasing weapons from within Europe, boosting the EU's defense industry.
However, other member states emphasize the need to allow Ukraine access to necessary resources for its defense efforts, regardless of their origin.
Despite marathon talks in Brussels that failed to yield a definitive approval, the European Commission has presented a plan aimed at facilitating a 140 billion euro ($162 billion) aid package over the next few years to Kyiv.
The 'reparation loan' is seen as crucial for sustaining Ukraine's fight against Russia and holding Moscow accountable.
However, this proposal poses significant legal and political challenges.
The European Commission has suggested an intricate method of borrowing funds from Euroclear that have already matured into cash.
These funds would then be loaned to Ukraine with the understanding that repayment will depend on Russia compensating for the damages caused by its war.
The EU's 27 member states are expected to ensure repayment if they eventually decide that Russia should not reclaim the assets without paying reparations.
This move has been met with resistance, particularly from Belgium, which fears potential legal challenges from Russia.
Belgian Prime Minister Bart De Wever insists on guarantees from other EU countries and demands that several member states begin tapping into Russian assets frozen in their territories.
Thursday's summit concluded with a watered-down text, avoiding direct mention of the loan but inviting the commission to present 'options for financial support' for Ukraine in 2026 and 2027.
The exact details of this proposal will likely be subject to extensive negotiations, including the conditions under which these funds can be spent by Kyiv.
France advocates for the majority of funds to be allocated towards purchasing weapons from within Europe, boosting the EU's defense industry.
However, other member states emphasize the need to allow Ukraine access to necessary resources for its defense efforts, regardless of their origin.
