EU Eyes Frozen Russian Assets to Fund Ukraine’s Urgent Needs
According to the International Desk of Webangah News Agency, the European Commission is set to propose a legal framework this week that would leverage frozen Russian assets to finance Ukraine’s urgent needs. The proposal also leaves open the possibility of borrowing from financial markets, or a combination of both approaches.
Sources familiar with the matter told Reuters that the plan comes after EU leaders agreed in October to address Ukraine’s immediate financial needs for the next two years. However, the direct use of €140 billion in frozen Russian assets as loans to Kyiv remains unapproved due to concerns raised by Belgium.
Most of the frozen Russian assets in Europe are held in Belgian securities deposit accounts at Euroclear. The Belgian government has repeatedly cautioned about the legal risks associated with using these assets.
Under the European Commission’s plan, Ukraine would only be required to repay the loan if Russia compensates for the damages resulting from the war against its neighbor.
The proposed legal text from the European Commission also preserves the option for the EU to borrow from financial markets and switch between the two approaches.
The European Commission is scheduled to approve the proposal on Wednesday. A Commission spokesperson, responding to Reuters, stated only that the Commissioners will examine options for financing Ukraine during their weekly meeting.
