EU summit will test bloc’s unity amid row over Russian assets for Ukraine amid US pressure, - Politico
Disagreements between European governments over the use of frozen Russian assets for Ukraine are intensifying amid pressure from the US.
This is reported by Politico, as relayed by Censor.NET.
Some countries, including Hungary, the Czech Republic, Italy, and Bulgaria, are demanding that priority be given to solving their own problems and reducing support for Kyiv, while German Chancellor Merz and other leaders stress that a lack of unity on financing Ukraine will undermine the EU's authority on the world stage.
Representatives of the Trump administration are allegedly pressuring US-friendly governments to refuse to use €210 billion in frozen assets for Ukraine. The main opponent is Belgium, which is resisting, fearing obligations to its own taxpayers.
EU leaders are considering several scenarios: from pushing through a "reparations loan" by a qualified majority vote to limited bilateral loans. Latvian Prime Minister Evika Silina stressed that it is important for the bloc to show its ability to make strong decisions and support Ukraine.
As noted, for Ukraine, a "reparations loan" financed by Russian assets could become a critically important source of funds, as the country expects a budget deficit of €71.7 billion in 2026. The success of the summit depends not only on financial support for Kyiv, but also on demonstrating the unity of the EU at a decisive moment in geopolitical history.
What is known about the "reparation loan" for Ukraine
- We would like to remind you that at a meeting in October, EU leaders postponed a decision on the use of frozen Russian assets as collateral for a so-called "reparation loan" to Ukraine in the amount of €140 billion ($163 billion). EU leaders plan to return to discussing this issue at a meeting on 18-19 December.
- Belgium, where the lion's share of these funds is held, opposed the European Commission's proposed plan to use frozen Russian assets at a meeting of EU leaders. The country fears legal and financial sanctions from Moscow and wants other EU countries to share these risks.
- 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.
- In response, Russian dictator Putin signed a decree that effectively allows for the accelerated expropriation of assets belonging to Western companies that have not yet left Russia.
- 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.
