Plan for using frozen assets to finance Ukraine
The European Union continues to work on a plan to use 210 billion euros of frozen Russian assets to finance Ukraine until 2027. On December 15, 2023, EU ambassadors held negotiations, during which Belgium expressed concerns about the insufficient guarantees accompanying this plan. A final decision regarding the so-called 'reparations loan' to Ukraine is expected at the EU summit on December 18-19.
Recall that on December 12, 2023, EU ambassadors made a decision to indefinitely freeze Russian assets. Currently, 193 billion euros of Russian assets are frozen in the Euroclear depository, of which 180 billion euros belong to the Central Bank of the Russian Federation. However, Belgium is not the only one opposing this initiative; Italy, Bulgaria, and Malta have also joined in expressing doubts regarding the reparations loan scheme.
Belgium's demands and those of other EU countries
Belgium has made specific demands, including three main guarantees:
- the possibility of obtaining financing in the event of legal claims from Russia;
- the right to rely on a security system regardless of the guarantees of other EU countries;
- the funds will not be disbursed until the guarantees come into effect.
These issues remain critically important for achieving consensus among EU member states regarding the use of frozen assets to support Ukraine.
The discussion of using frozen Russian assets to finance Ukraine highlights the importance of international support in restoring the country after the conflict. The position of Belgium and other EU countries indicates that issues of legal guarantees and security are priorities to ensure the stability of this financing. The upcoming EU summit will be a key moment for shaping a common strategy and potential solutions in this important matter.