"The EU froze about 200 billion euros ($232.4bn) of Russian central bank assets after the country launched its full-scale invasion of Ukraine in 2022. In order to use the assets to fund Ukraine's war effort, the European Commission, the EU's executive, has floated a complex financial manoeuvre that involves the EU borrowing matured funds from Euroclear. That money would then, in turn, be loaned to Ukraine, on the understanding that Kyiv would only repay the loan if Russia pays reparations."
"Belgium, the home of Euroclear, objected to this plan on Thursday, with Prime Minister Bart De Wever calling its legality into question. Russia has described the idea as an illegal seizure of property and warned of retaliation. Following Thursday's political wrangling, a text approved by all the leaders except Hungary's Prime Minister Viktor Orban was watered down from previous drafts to call for options for financial support based on an assessment of Ukraine's financing needs."
EU leaders met in Brussels to address Ukraine's financing needs for the next two years. Many leaders sought approval for a 140 billion-euro reparation loan funded by frozen Russian central bank assets held at Euroclear. The proposed scheme would have the EU borrow matured funds from Euroclear and lend them to Kyiv, with repayment contingent on Russia paying reparations and the loan fully guaranteed by all 27 member states. Belgium objected, citing legal concerns and Euroclear's location, and Russia warned the plan amounted to illegal seizure. The summit text was watered down, postponing concrete options until December.
Read at www.aljazeera.com
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