EU is working on reparations loan for Ukraine, - Kallas
EU High Representative Kaja Kallas said that work is continuing on a mechanism for using frozen Russian assets for a reparations loan to Ukraine.
According to Censor.NET, this was reported by Interfax-Ukraine.
"Of course, we want to move quickly in this direction, but the EU has 27 member states with different concerns. Therefore, work is ongoing. In my opinion, there are two ways forward. One is to create a system that is legally sound and also covers the risks for those member states that have greater risks than others," she said at a press conference with her Ukrainian counterpart Andrii Sybiha in Kyiv on Monday.
Another direction, according to Kallas, is "how and when this reparations credit can be used." However, the head of EU diplomacy did not predict when countries would make a specific decision.
"I cannot give a specific date because we are working very intensively on this. But I am glad that we are seeing some progress in the general discussions on reparations and frozen assets," she stressed.
What is a reparation loan?
Reparation credit or loan is a new financial instrument that is currently being actively discussed in the EU and G7 countries as a mechanism to help Ukraine by using frozen Russian assets.
The main source of funds is approximately $300 billion in Russian state assets frozen around the world (approximately $200 billion of which is in the EU).
The EU is considering an option whereby the proceeds from these assets (approximately €3-5 billion annually) would be used to service the debt (i.e. to pay interest and part of the principal).
