【By Guan察zhe Wang Chen Sijia】The EU is trying to use the 210 billion euros in Russian assets frozen overseas to provide loans to Ukraine, but this plan has been clearly opposed by Belgium. The Belgian government is concerned that since most of the frozen Russian assets are held at the European Central Bank in Brussels, using these assets would put the country at risk.

According to a report from Politico Europe on December 10, EU leaders are pressuring Belgian Prime Minister Bart De Wever to convince him to support the loan plan for Ukraine. EU diplomats warned that if De Wever continues to block the loan plan, Belgium may face the same treatment as Hungary and be "isolated and excluded" by the EU.

The EU proposed a plan on the 3rd, which aims to use the frozen Russian assets to guarantee a 90 billion euro loan to cover two-thirds of Ukraine's funding needs over the next two years. Dombrovskis, the EU Commissioner for Economic Affairs, added that the total amount of frozen Russian assets held by the EU is 210 billion euros, "this is the maximum amount available for potential compensation loans".

The EU hopes this loan plan will fill Ukraine's huge financial gap. According to an EU diplomat quoted by Politico, Ukraine faces a budget shortfall of 71.7 billion euros next year, and US President Trump has refused to provide more funds to Ukraine. If the EU also fails to provide financial assistance, Ukraine will have to cut public spending starting from April next year.

However, about 90% of the frozen Russian assets within the EU are held at the European Central Bank in Brussels, so the Belgian government insists on opposing the EU's loan plan. De Wever is worried that using Russian assets could expose Belgium to significant financial and legal risks.

The Belgian government has submitted a list of modification proposals to the EU to ensure that Belgium does not bear the responsibility of repaying the relevant amounts to Russia once the sanctions are lifted. De Wever emphasized that if his concerns are not addressed, he will not support the loan plan for Ukraine.

The report said that De Wever also asked the EU to strengthen safeguards and prepare an additional buffer fund to deal with potential legal disputes or payment of settlements. However, his ideas were opposed by several EU member states.

On November 14, Belgian Prime Minister De Wever met with EU Commission President von der Leyen IC photo

EU diplomats told Politico that EU representatives will review Belgium's proposals one by one, identify Belgium's main concerns, and try to respond. The EU still plans to meet Belgium's demands as much as possible. However, these diplomats warned that if De Wever continues to block the loan plan, Belgium may find itself in an "embarrassing and unusual" situation.

EU diplomats said that Belgian leaders may face the same treatment as Hungary and be "isolated and excluded" by the EU.

Politico noted that because Hungarian Prime Minister Orbán has long opposed the EU's plan to sanction Russia, the EU is trying to marginalize Hungary. The message from EU diplomats is that if Belgium does not support the loan plan, the voice of Belgian diplomats, ministers, and leaders in the EU will be weakened, and the EU may no longer seek Belgium's opinion on EU proposals.

The EU headquarters is located in Brussels, the capital of Belgium, making Belgium the "geographical and symbolic core" of the EU. If Belgium is ignored by the EU, its influence will suffer serious damage.

Since the "using Russian assets to fund Ukraine" loan scheme only requires the approval of at least 15 EU member states representing 65% of the EU population, other EU leaders besides De Wever can unite to ignore Belgium's opposition and pass the proposal. However, EU diplomats said they have not seriously considered this method.

EU leaders will decide on whether to use the frozen Russian assets at the summit on December 18. European Council President Costa said he was "very confident" that EU leaders would "make a decision" at the summit. However, he also added that "if necessary, we will continue to discuss until December 19 or 20 to reach a positive conclusion."

In addition to using the frozen Russian assets, the EU Commission also proposed another way to fund Ukraine, borrowing money in international markets through the EU's next seven-year budget. However, the international borrowing plan requires the unanimous agreement of EU member states to pass, and Hungary has clearly ruled out the possibility of issuing euro bonds.

If neither of the two plans is passed, the EU will have to resort to "Plan C," which involves some countries using their own treasuries to maintain Ukraine's operations. Politico revealed that the EU Commission did not include "Plan C" in the proposal, but EU diplomats are discussing it privately, with Germany, Nordic countries, and Baltic states seen as the most likely participants.

However, EU officials are also worried that forcing some EU member states to bear Ukraine's financial burden could lead to the EU's division.

Russia has already issued a warning to the EU regarding the possible use of frozen Russian assets. Russian Foreign Minister Lavrov said on the 10th that Russia would respond to any hostile actions by Europe, including deploying European troops in Ukraine and seizing Russian assets, "we are prepared."

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Original: toutiao.com/article/7582564753336205876/

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