European Union leaders agreed on Thursday to address Ukraine’s “urgent financial needs” over the next two years, but did not approve a plan to use the funds to finance a huge loan to kyiv due to concerns raised by Belgium. A disappointment for Volodimir Zelensky’s side, who returns to kyiv with a promise, not with rubles in his hands.
The position of the Belgian Government was crucial, since it is a Belgian financial institution, Euroclear, that owns the assets that would be used to finance a loan of 140 billion euros to support Ukraine in its fight against the Russian invasion. Its prime minister, , demanded guarantees from the Twenty-Six in the event that Moscow denounced it, a kind of common insurance to face possible processes.
Many EU states hoped that leaders, meeting at a summit in Brussels, would approve the idea and ask the European Commission (EC), the EU’s executive body, to present a formal legal proposal in the coming weeks.
However, a text supported by all leaders except the Hungarian Prime Minister, , was watered down from previous drafts to ask the EC for “financial support options based on an assessment of Ukraine’s financing needs.” “Russia’s assets must remain frozen until Russia ceases its war of aggression against Ukraine and compensates it for the damage caused,” the statement added. The goal now is for EU leaders to reach an agreement in December.
“This is an issue that is certainly not trivial. It is very complex,” declared the president of the European Commission, , to the press after the summit. “It was also very clear that there are points to be clarified.”
Previously, the Ukrainian president, invited to the summit and present in person, urged the EU to quickly approve the loan proposal. “Anyone who delays the decision on the full use of frozen Russian assets not only limits our defense but also slows down the EU’s own progress,” he told the leaders, adding that kyiv would use a significant part of the funds to buy European weapons. The money could also be used immediately to strengthen Ukraine’s air defense, air fleet and front-line positions, he said, adding: “That means saving lives.”
In search of guarantees
However, Belgium’s nationalist Prime Minister De Wever issued a strong warning, saying he could only support the plan if he had solid guarantees of its legality and that other EU countries would share the risks. “If the demands are met, we can move forward. If not, I will do everything possible at the European level, also at the national level, politically and legally, to stop this decision,” he told the press upon arrival at the summit.
De Wever urged all EU members to share the costs of any legal action taken by Russia and to contribute financially if the money ever needed to be repaid. He also stated that frozen Russian assets held by other countries should be part of the plan.
“If the demands are met, we can move forward. If not, I will do everything possible at European level, also at national level, politically and legally, to stop this decision”
Bart De Wever
At the conclusion of the summit, the president insisted that the legality of the “reparation loan” plan was unclear and had yet to be resolved. The biggest problem is ensuring the money can be returned if something goes wrong, he said.
However, von der Leyen and European Council President Antonio Costa, who chaired the summit, insisted that the debate had shown that the reparations loan scheme could work. “It is possible to solve all the technical problems. That means that this solution is viable,” declared the president of the EU leaders, Antonio Costa, at a press conference.
Russia has called the idea an illegal asset seizure and warned of retaliation.
