EU approaches decision on reparations loan to Ukraine: Belgium agrees not to block it, - Politico
EU leaders plan to instruct the European Commission to develop a proposal on the use of Russian assets. Belgium has effectively given the political "green light" for this decision.
According to Censor.NET, this was reported by Politico.
The publication obtained a draft of the final communiqué of the European Council meeting to be held on Thursday, October 24.
During preparations for the meeting, EU ambassadors informally agreed on a text calling on the European Commission to propose the creation of a reparations loan for Ukraine. This loan should be "underpinned by appropriate European solidarity and risk-sharing."
According to an unnamed Belgian diplomat, this is effectively the political "green light" for the European Commission, which can now officially begin work on the relevant mechanism.
According to the publication's sources, the European Commission is confident that it can develop a legally sound plan for implementing the reparations loan idea.
The EC also considers it unlikely that the court will rule in Russia's favor in the future, even if Moscow refuses to pay reparations to Ukraine and the Russian assets used for the loan are lost.
Another European diplomat noted that he does not expect resistance from Belgium:
"Belgium has put forward a maximalist position in order to compromise once there is a proposal on the table," said the first EU diplomat.
Funds for the purchase of weapons
French Foreign Minister Jean-Noël Barrot recently stated that credit funds secured by frozen Russian assets will help Ukraine purchase weapons for at least three years.
"In the coming weeks, we will give Ukraine the ability to defend itself for at least three years thanks to a loan provided by the European Commission, which will later be repaid using the reparations that Russia will pay to Ukraine," Barrot said.
What is a reparations 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 about $300 billion in Russian state assets frozen around the world (approximately $200 billion of which are 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).
