Danish Foreign Minister Rasmussen: EU must provide "reparations loan," otherwise "we will leave Ukraine in very difficult situation"
Danish Foreign Minister Lars Løkke Rasmussen said that it is extremely important for the European Union to ensure a decision on the so-called "reparations loan" for Ukraine so that Kyiv has resources for next year and so that Europe proves its ability to make the necessary decisions.
He said this in comments to the media before the EU Council meeting, according to Censor.NET, citing the EP.
According to Rasmussen, a decision must be made this week that will provide Ukraine with financial certainty and resources to continue the fight. He stressed that there is really only one realistic option.
"The only option that actually exists is a reparations loan, which requires a qualified majority. All others require a unanimous decision... It will not happen today, but it must happen when the European Council meets later this week. Otherwise, we will leave Ukraine in a very difficult situation and, unfortunately, demonstrate to the world that there is some truth in the characterisation that the US recently gave to Europe," said the Danish Foreign Minister.
He also emphasised the reputational risks for the European Union in the event of inaction. "America looks at Europe and sees us as weak – and we will be weak if we do not act," Rasmussen said.
Russian assets to help Ukraine
- As a reminder, 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 "reparation 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 has accumulated 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.
