The initiative, long postulated by Kiev, could significantly strengthen Ukraine's finances, while carrying the risk of a serious diplomatic dispute with Moscow.
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Brussels can reach for Russian assets. Such options are on the table
As the daily describes, according to five officials familiar with plans, One of the variants provides for the use of cash from the assets of the Russian Central Bank, located in Belgium in Euroclear, to buy EU bonds with zero interest.
The money obtained in this way would then go to Kiev in tranches. From EUR 194 billion in Russian assets accumulated in Euroclear, around EUR 170 billion has expired and is currently in the form of cash on deposit accountsresults from the information of people familiar with the case.
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Alternatively, Financing could be implemented through a special targeted company, which would also allow participation to participate in countries outside the EU. The President of the European Commission Ursula von der Leyen supported the concept of reparation loans last week, indicating that These funds would be refunded only if Russia agreed to pay compensation for damages caused during the invasion. “Instead of waiting for the end of the conflict, this money will help Ukraine today,” emphasized von der Leyen.
“Financial Times” reports that Technical work on the proposal has been accelerated in a situation where the prospects of peace negotiations are weakening and Russia insists firmly for its maximalist goals in Ukraine.
“Reparative loans” for Ukraine. Key talks are planned
At the same time, Trump's administration in the USA is reluctant to increase economic pressure to Moscow or expand military support for Kiev. The United States also presses on allies to use not only the income from Russian assets that were used to secure $ 50 billion loans for Ukraine last year, but also the base assets themselves. The note provided to the G7 countries indicated that they should “consider the takeover or innovative use of Russia's sovereign assets to finance the defense of Ukraine.”
The British newspaper informs that this week EU finance ministers will meet in Denmark to discuss the concept of reparation loans. The European Commission is trying to find solutions that would correspond to the concerns of some Member States – especially Belgium, Germany and France – regarding the legality of taking over capital instead of interest themselves and the potential impact of such a step on trust in the euro as a reserve currency.
Ukraine is on an additional $ 50 billion in budget support next year, in addition to military assistance, with Europe will have to take over the main burden of financing due to the refusal of Washington providing further assistance.
