The European Central Bank has Refused to Support the Payment of €140 billion to Ukraine
This may complicate the allocation of a “reparations loan" to Ukraine.
The Gaze reports on it according to the Financial times.
The European Central Bank has refused to provide guarantees for the payment of a €140 billion “reparation loan” to Ukraine, which was to be secured by frozen Russian assets, the Financial Times reports, citing sources.
Citing several officials, the publication writes that the ECB has concluded that the European Commission's proposal violates its mandate. This decision exacerbates Brussels' difficulties in obtaining a loan secured by Russian central bank assets frozen in Euroclear.
The “reparation loan” for Ukraine proposed by the European Commission, to be financed by frozen Russian assets, should become one of the main pillars for meeting Ukraine's financial needs in 2026-2027. At the same time, Belgium, whose bank holds the funds, refuses to support this scheme and demands greater guarantees from the EU so as not to be left as the sole defendant in the event of a lawsuit by Russia.
At the same time, the EU believes that Belgium seems to have ulterior motives for holding Russian money due to the tax revenues it generates, as the country has not implemented a special instrument for transparent accounting of these funds.
The European Commission has taken a step towards providing new financial support to Ukraine. On September 10, Ursula von der Leyen publicly proposed the idea of a reparations loan for the first time in her annual speech.
As the Gaze reported earlier EU leaders discuss “Reparations Loan” for Ukraine using frozen russian assets