News|Russia-Ukraine warEU leaders delay decision on using frozen Russian funds to aid UkraineEU leaders had hoped to agree on a plan to fund a loan of 140 billion euros to bolster Ukraine.
Leaders within the European Union have agreed to support Ukraine in its financial needs against Russia's invasion. However, they did not approve the plan to utilize frozen Russian assets due to objections raised by Belgium.
Leaders within the European Union have agreed to support Ukraine in its financial needs against Russia's invasion. However, they did not approve the plan to utilize frozen Russian assets due to objections raised by Belgium.
On Thursday, EU leaders convened in Brussels to discuss Ukraine's immediate financial requirements for the next two years. A proposed "reparation loan," which aimed to use frozen Russian assets held by Euroclear to finance a loan of 140 billion euros ($163.3bn) for Ukraine, was under consideration.
The EU has frozen approximately 200 billion euros ($232.4bn) of Russian central bank assets since the full-scale invasion of Ukraine began in 2022. The European Commission has suggested a financial strategy whereby the EU could borrow matured funds from Euroclear, subsequently loaning them to Ukraine. Ukraine would be expected to repay the loan only if Russia provides reparations.
This scheme would be "fully guaranteed" by the EU's 27 member states, who would ensure repayment to Euroclear should Russia reclaim the assets without paying reparations. Belgium, where Euroclear is based, objected to this plan, with Prime Minister Bart De Wever questioning its legality.
Russia has labeled the proposal as an illegal seizure and has warned of possible retaliation.
Leaders within the European Union have agreed to support Ukraine in its financial needs against Russia's invasion.
A text, agreed upon by all leaders except Hungary's Prime Minister Viktor Orban, was modified to request "options for financial support based on an assessment of Ukraine’s financing needs." These options will be presented at the next European summit in December.
The declaration stated, "Russia's assets should remain immobilized until Russia ceases its war of aggression against Ukraine and compensates for the damage caused by its war."
Ukrainian President Volodymyr Zelenskyy, present at the summit, urged a swift decision on the loan plan, emphasizing the importance of utilizing frozen Russian assets to bolster Ukraine's defense and support European progress.
Additionally, the EU adopted new sanctions against Russian energy exports, including a ban on liquefied natural gas imports. This move followed US President Donald Trump's announcement of sanctions on Russia's largest oil companies.
In response, Russian President Vladimir Putin described the sanctions as an "unfriendly act" and stated that Russia would not yield to external pressure.
Based on reporting by Al Jazeera.