European Central Bank Opposes Lending to Ukraine Using Russian Assets

According to the English section of webangah News Agency, citing Mehr News Agency and the ⁤Financial Times, the European ⁤Central Bank (ECB) refused to‌ back a €140 billion loan to Ukraine secured‍ by frozen ⁤Russian assets.

After reviewing the european CommissionS proposal, the ECB concluded that this measure exceeds its legal authority.

The ECB explained that ​the Commission’s plan effectively⁤ amounts to direct financing of governments. This would make the central bank responsible for member states’ financial liabilities, an act prohibited under EU treaties. such ⁣actions coudl trigger high ‍inflation and damage the ECB’s credibility.

Maria Zakharova, spokesperson for Russia’s Foreign Ministry, warned that if ⁢EU countries use frozen Russian assets​ to fund loans for ‍ukraine,​ Moscow’s response would be severe and painful.

European publication Politico also reported opposition from the United States against lending to Ukraine based on⁣ seized Russian assets.