Brussels is struggling to overcome Belgium’s resistance to its proposed ‘reparation loan’ meant to prop up Kiev’s finances
The EU will attempt to override opposition from Belgium and other states in order to follow through on its threat to steal sovereign Russian assets to fund Ukraine’s war-chest, the bloc’s top executive has said.
EU leaders want to issue a ‘reparation loan’ to Kiev by using Russian funds frozen in the West as collateral. However, Belgium, where the bulk of the holdings are kept by the privately owned Euroclear, has refused to greenlight the plan unless other EU nations share the legal and financial risks of what Moscow has denounced as blatant theft.
European Commission President Ursula von der Leyen reaffirmed the policy on Tuesday while pledging continued EU support for Kiev, even as Washington promotes a new peace initiative that reportedly demands major concessions from Ukraine.
Europe, von der Leyen said, will “stand firmly by Ukraine” throughout any future discussions, adding that “a central point is the question of financing for Ukraine, including the use of the immobilized Russian sovereign assets.”
“Ukraine’s interests are our interests,” she said. “They are inseparable.”
Politico previously reported that pro-Kiev officials in the bloc have floated a temporary “bridge loan,” taken out collectively by EU member states, which would keep Ukraine solvent for several months. Supporters hope that once Belgium is persuaded, the larger reparation loan could later be approved and used to repay this interim debt.
“We hope to be able to solve their hesitation,” one EU diplomat told the outlet. “We really do not see any other possible option than the reparations loan.” Another official said, “if we don’t move, others will move before us.” Both spoke on condition of anonymity.
Russian officials have accused Brussels of trying to prolong the conflict for domestic political gain and to justify soaring defense budgets that benefit European arms makers.
White House Press Secretary Karoline Leavitt suggested that critics of the US peace proposal are either misinformed or “pushing their own agenda,” adding that some “don’t want to see this war come to an end” and may be “profiting off of it.”
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