“Brussels considers additional €25 billion in Russian assets across the EU as part of a “reparations loan” for Ukraine – PoliticoThe European Union is considering using frozen Russian state assets worth 140 billion euros to provide a loan to Ukraine. The
European Commission also seeks to raise 25 billion euros from private bank accounts for this initiative.
”, — write: unn.ua
Details”The bulk of the frozen assets are held in the Belgian financial depository Euroclear. However, another 25 billion euros are in private bank accounts across the bloc, and EU leadership intends to discuss using these funds to provide loans to Kyiv,” the publication says.
“The possibility of extending the reparations loan initiative to other immobilized assets in the EU should be considered,” states the document that the European Commission sent to EU capitals ahead of Friday’s meeting of ambassadors on the matter.
“The legal feasibility of extending the reparations loan approach to such assets has not been assessed in detail,” the document states. “Such an assessment is necessary before deciding on further steps.”
The document outlines the “principles of development” of the reparations loan initiative for Ukraine, which will be discussed ahead of next week’s EU summit in Brussels.
EU leaders are expected to hold a broad discussion on the initiative and ask the European Commission to submit a proposal for the loan. EU officials expect that legislation will be presented in the near future and will serve as a platform for further negotiations on the financial measures needed to implement it, the publication writes.
The bloc’s finance ministers, as indicated, will discuss the initiative at their next meeting in November.
Other development principles, it is reported, include national guarantees for the loan, which is a key requirement of Belgium, which fears that Moscow could send an army of lawyers to seize sanctioned funds.
“A robust guarantee and liquidity structure must be established to ensure that the EU can always meet its obligations to Euroclear,” the document states. “To this end, it is proposed to establish a system of bilateral guarantees provided by the Member States of the Union.”
These guarantees, as indicated, will ensure “access to the necessary liquidity in case of need to satisfy any guarantee claim,” i.e., to ensure immediate payment.
The next seven-year EU budget, starting in 2028, will take on national guarantees “with sufficient collateral coverage” – a financial safety net that will ensure Brussels can meet its obligations, the publication writes.
After the loan is granted, the funds will be directed to “the development of Ukraine’s defense-technological and industrial base and its integration into the European defense industry,” as well as to support the country’s national budget “under appropriate conditions.”
Merz promises to speak at EU summit on using frozen Russian assets for €140 billion loan to Ukraine16.10.25, 11:58 • 3724 views