Leaders from European states have discussed a plan to give Kiev a recovery loan, financed with frozen Russian assets, totaling €210 billion. Most of that money (185 billion euros) is kept in Belgium at Euroclear – a central securities depository in Brussels. The plan faces fierce resistance from Belgian Prime Minister Bart De Wever, who demands ironclad guarantees for protection against Brussels against possible Russian retaliation.
However, it seems increasingly unlikely that an agreement will be reached, potentially leaving Ukraine’s fate hanging in the balance.
“This [reparations loan] That is what we are working on,” said EU Foreign Affairs Chief Kaja Kallas. “We are not there yet and it is becoming increasingly difficult, but we are doing the work and we still have a few days.”
She added that the recovery loan was “the most credible option” to finance Ukraine in the coming year.
However, in recent days, Italy, Bulgaria and Malta have spoken out against the plan and, like Hungary, are against the plan.
And this weekend, the Czech Republic’s newly installed Prime Minister Andrej Babiš also expressed his opposition to the loan.
The EU also faces a concerted US effort to torpedo the bailout using Russian assets.
The Trump administration is actively pressuring several European countries to withdraw their support for the loan, senior EU sources told POLITICO.
Washington is reportedly keen to get its hands on Russian money to use in US-led reconstruction projects in Ukraine.
Russia has also launched a lawsuit against Euroclear, seeking damages of up to €196 billion.
German Chancellor Friedrich Merz this week underlined the importance of the upcoming meeting in Brussels. He told reporters that the European Union would be “severely damaged for years” if it failed to reach an agreement on the loan.
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