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EU to Seize Russian Assets for Ukraine Loan
16 Dec
Summary
- EU envoys are discussing a plan to use frozen Russian assets for a loan.
- The loan aims to cover Ukraine's economic and military needs for two years.
- Belgium opposes the plan due to fears of Russian retaliation and legal risks.
European Union envoys are actively working to resolve differences over a proposal to leverage frozen Russian assets for a significant loan to support Ukraine's ongoing economic and military needs. The plan aims to provide Ukraine with an estimated 135 billion euros ($157 billion) over the next two years, a critical lifeline as the war continues.
This unprecedented move faces opposition, notably from Belgium, which fears potential Russian retaliation through legal or other means. The European Central Bank has also cautioned about potential damage to confidence in the euro. Two main options are on the table: a 'reparations loan' using assets until Moscow pays for damages, or the EU borrowing on financial markets, a more difficult prospect given current debt levels.
Despite these concerns, the urgency is mounting, with leaders determined to reach a decision at an upcoming summit. The proposal, designed to circumvent potential vetoes from countries like Hungary and Slovakia, seeks to secure vital funding for Ukraine, with Ukrainian President Volodymyr Zelenskyy calling it a crucial security guarantee.
