EU should stop discussing options and continue working on reparations loan for Ukraine, - Dombrovskis
The European Union should stop discussing options for financing Ukraine and continue using frozen Russian assets.
As reported by Censor.NET with refence to Euronews, this was stated by European Commissioner for Economy and Productivity Valdis Dombrovskis.
"It's time to stop discussing different options and move forward," he said.
Yes, Dombrovskis believes that a reparations loan guaranteed by frozen Russian assets in Europe is "something that could provide significant support to Ukraine without creating an additional and substantial fiscal burden for the EU or its member states."
EU options for financing Ukraine
It is noted that earlier, the European Commission prepared a document with financing options to support Ukraine's fight against Russian aggression.
Among the options proposed by European Commission President Ursula von der Leyen to EU leaders are:
- voluntary bilateral contributions from member states,
- issuance of joint debt at EU level
- reparations loan based on Russia's immobilized assets.
"Other options are more expensive for member states, as it is clear that Ukraine is facing debt sustainability issues, so we cannot simply continue to provide Ukraine with another loan," Dombrovskis said.
Dombrovskis addressed Belgium
The European Commissioner emphasized the need to support Ukraine and sent a direct message to the Belgian government, on whose territory most of the assets frozen in the EU are held. Belgium is the main opponent of the reparations loan due to fears of compensation claims from Moscow.
"If you give in to bullying, you will face even more bullying. We need to resist this pressure," Dombrovskis said, acknowledging that the discussion between member states will be very difficult.
Russian assets to help Ukraine
- Earlier, European Commission President Ursula von der Leyen proposed using frozen Russian assets as collateral for providing Ukraine with "reparation loans". Formally, Russian assets subject to sanctions will not be confiscated, but Ukraine will repay such loans only after Russia pays reparations.
- According to various estimates, the European Union's "reparations loan" to Ukraine, secured by Russian assets, could amount to €130-140 billion. Its final size will be determined after the International Monetary Fund assesses Ukraine's financing needs in 2026 and 2027.
- In total, Euroclear currently holds more than €175 billion in cash from frozen Russian assets, which could be used to secure a new loan. But before the EU agrees to grant a reparations loan, it will want to repay the G7 loan to Ukraine of €45 billion ($50 billion) agreed last year, which was to be repaid from the proceeds of frozen Russian assets.
