The European Union may change its approach to financial support for Ukraine and abandon the mechanism of a "reparations loan" that was supposed to be based on frozen russian assets. It was reported by Le Monde, which the publication cites.
The European Commission has proposed another option - loans from member states worth up to EUR 90 billion. This mechanism is being considered because of the risks for the Belgian institution Euroclear, where most of the russian assets are kept. According to journalists, the use of frozen funds could lead to lawsuits from moscow and pose a threat to the institution's work.
"The Commission has taken a technocratic, apolitical approach and has not shown any urgency," said MEP Nathalie Loiseau.
Belgian Prime Minister Bart de Wever had earlier refused to support the "reparations loan" scheme, emphasizing the risks to the country.
In a note released on November 17, European Commission President Ursula von der Leyen admitted that the use of frozen russian assets could "undermine Euroclear's business model and destabilize the euro." Therefore, the Commission presented an alternative - a joint borrowing on behalf of the 27 states to cover Ukraine's needs.
Under this option, the EU budget can guarantee up to EUR 90 billion. Kyiv could receive the rest of the amount through bilateral assistance.
One European diplomat explained:
"We have to weigh, on the one hand, the estimated cost of this joint borrowing, between EUR 2 and EUR 3 billion per year, and on the other hand, the unpredictable risk associated with a reparations loan."
The positions of the member states differ. Poland, the Baltic states and the Scandinavian countries are in favor of a reparations loan, considering it fair that russia should pay for the damage it has caused. Germany also expressed support for the original plan. At the same time, France and several other countries do not rule out joint borrowing.
The situation is complicated by the position of the Hungarian Prime Minister Viлtor Orban, who can veto any decision, saying that he no longer intends to support Kyivю
The Le Monde source emphasized:
"Europeans will need to demonstrate their determination to maintain control over Russian assets, whether to help Kyiv or to strengthen their position in the face of Washington."
Earlier, the European Commission proposed to use the frozen assets of the russian federation to provide Ukraine with a "reparations loan" of EUR 140 billion , but the scheme proved to be legally vulnerable and politically difficult.
We would like to remind you that the EU and Belgium have not yet agreed on the use of russian assets for Ukraine.
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