EU Leaders Discuss “Reparations Loan” for Ukraine Using Frozen Russian Assets
European Commission leaders Ursula von der Leyen and Kaja Kallas emphasized that providing Ukraine with a “reparations loan” based on frozen Russian assets is a sensitive but legally viable measure, currently under discussion among EU member states.
The Gaze reports on it, referring to European Pravda.
Providing Ukraine with a so-called “reparations loan” based on frozen Russian assets is a sensitive issue for many EU member states. This was stated by European Commission President Ursula von der Leyen before the start of the informal European Council summit in Copenhagen.
According to her, some countries doubt the advisability of granting such a loan, as this issue raises serious political and legal discussions.
At the same time, the President of the European Commission stressed the importance of increasing pressure on Russia and proposed using the frozen assets of the Russian Federation to provide Ukraine with a loan, which will be repaid if Russia pays reparations.
“We must increase pressure on Russia. That is why I have proposed ‘reparation loans’ for Ukraine based on frozen Russian assets,” von der Leyen said.
She stressed that Russia's assets would not be confiscated, but only used for lending.
“Ukraine must repay this loan if Russia pays reparations, because the perpetrator must be held accountable,” the EC President explained.
She added that many EU countries are “to put it mildly, very hesitant” about whether this idea is really the right one, but she considers it necessary to ensure justice and financial support for Ukraine.
At the same time, EU High Representative for Foreign Affairs and Security Policy Kaja Kallas stated that the idea of providing Ukraine with a so-called “reparations loan” from frozen Russian assets does not contradict international law.
According to her, the basic principle of international law is that whoever caused the damage must compensate for it, and in this case, the responsibility lies with Russia.
Kallas confirmed that EU countries are discussing the possibility of granting Ukraine a €140 billion loan using frozen Russian assets, but no final agreement has been reached yet.
The essence of the proposal is that if Russia pays reparations, Ukraine will repay the EU loan, and Russia will get its money back; if it refuses, it will lose its frozen assets.
As The Gaze informed earlier, Ukraine received another tranche of €4 billion from the European Union as part of the G7 Extraordinary Revenue Acceleration for Ukraine (ERA) initiative, which provides for financing from frozen Russian assets.