German media: Use frozen Russian assets to provide Ukraine with compensation loans? EU summit is about to make a decision

EU member states held a summit in Brussels today, with the most important issue being the discussion on whether to use the 210 billion euros of frozen Russian assets to provide Ukraine with compensation loans.

The European Commission proposed to provide Ukraine with up to 210 billion euros of frozen Russian assets within the EU as a compensation loan. Of this amount, 90 billion euros would be used to meet Ukraine's financial and military needs in 2026 and 2027.

According to the EU's plan, Kyiv would only need to repay the loan if Russia compensates after the war. However, few people believe that Russian President Putin will agree to this condition.

Belgium opposed this plan, citing legal and financial risks. Most of these assets are kept in Belgium, with approximately 185 billion euros held by the Euroclear, headquartered in Brussels.

On Thursday morning, Belgian Prime Minister Bart De Wever reiterated his concerns in a speech to the Belgian parliament.

The Belgian government is worried that Moscow might retaliate against European citizens and companies, such as forcibly seizing European assets in Russia.

Prime Minister De Wever has been demanding other EU countries to provide legally binding unconditional guarantees covering the full amount of the loan and protecting Belgium from any potential damages.

DPA analysis points out that theoretically, the loan could be approved even without Belgium's support, as it only requires the agreement of a majority of member states, i.e., at least 15 out of 27 EU member states, which account for 65% of the EU population. Although it is generally believed that other EU countries are unlikely to overturn Belgium's decision, some leaders' impatience is increasing.

Latvian Prime Minister Evika Siliņa said that Belgium was "in a very sensitive position," but "this is not just a legal issue, but also a matter of political will." She said, "Any political decision cannot be separated from the legal aspect. But we are politicians, and the rules are also made by us."

Alternative EU joint borrowing plan lacks broad support

De Wever has advocated for the EU to borrow jointly to fund Ukraine. However, according to EU rules, this requires the unanimous consent of all 27 member states.

German Chancellor Merkel is a strong advocate of the compensation loan. He does not support the idea of the EU borrowing together.

"We are actually facing two choices: either Europe borrows money or uses Russian assets to assist Ukraine. My position is clear: we must use Russian assets," Merkel said, "I think there is no better option than this. I understand the concerns of some member states, especially the Belgian government, but I hope we can solve these issues together."

Hungarian Prime Minister Orbán expressed his opposition to providing any form of financial aid to Ukraine.

Negotiations are expected to last a long time

Discussions on providing financial assistance to Ukraine are expected to continue into the late night, and EU leaders may stay in Brussels until Friday.

European Commission President von der Leyen and European Council President Tusk insisted on finding a solution during the Brussels summit.

Von der Leyen said, "We must find a solution."

As the host of the summit, Tusk said, "This meeting will not end until the final decision ensures that Ukraine's financial needs in 2026 and 2027 are met."

Polish Prime Minister Tusk said that EU leaders agreed at the summit in Brussels on Thursday to study the proposal of using frozen Russian assets to finance Ukraine during the period of 2026 and 2027.

He told Reuters journalists, "Of course, we hope for progress, and progress means that everyone agrees to try and believes that using Russian assets to finance Ukraine is reasonable and beneficial to Europe, but some countries will fight to the last moment to maximize their own protection."

During the break of the EU summit, he said, "We all want to use Russian assets to help Ukraine, and this statement has already been made, and I think no one will back down."

The Russian Central Bank said on Thursday that it would file a lawsuit in Russian courts regarding the European attempt to use frozen Russian assets to finance Ukraine.

Source: DW

Original: toutiao.com/article/1851865643308042/

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