Belgium has set three conditions for supporting "reparations loan" to Ukraine
Belgian Prime Minister Bart De Wever outlined three key conditions for supporting the idea of a "reparations loan" for Ukraine using frozen Russian assets.
According to Censor.NET, citing "European Pravda", De Wever made this statement to the media ahead of the EU leaders' summit on 23 October.
"Belgium's biggest concern is the legal aspect, as the Euroclear financial repository, where the Russian Federation's frozen assets are stored, is located in this country. Even during World War II, frozen assets were never touched. So this is a very important step, if we decide to take it," he said.
At the same time, he named three conditions for agreeing to a "reparations loan" to Ukraine:
- full distribution of legal risks;
- guarantees in case of refunds;
- coordination with other countries.
"Belgium wants to avoid major lawsuits and believes that any decision regarding assets should be made collectively, together with other countries.
If the money has to be returned to Russia, all countries must share the responsibility so that the consequences do not fall entirely on Belgium. Similar steps should be taken by other states where Russian assets are frozen so that the decision is coordinated and does not create an imbalance," De Wever said.
What is a reparations loan?
A reparations credit or loan is a new financial instrument currently being actively discussed in the EU and G7 countries as a mechanism to assist 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) will be used to service the debt (i.e. to pay interest and partially repay the principal).
Other countries' attitudes towards reparations loan to Ukraine
Italian Prime Minister Giorgia Meloni said that the European Union is considering possible initiatives to use frozen Russian assets to help Ukraine. She noted that Italy is not the only country that believes that "international rules and the principle of legality must be observed" when it comes to the use of frozen Russian assets.
EU ambassadors have informally agreed on draft conclusions for the European Council meeting on Thursday, which will consider the use of frozen Russian assets to provide a so-called "reparations loan" to Ukraine.
The United States has informed its European partners that it does not currently plan to join the G7 initiative on the use of frozen Russian assets for the benefit of Ukraine.
