Europe is unsure about the consequences of actions with Russian assets: a "mega-loan" of €140 billion to Ukraine is still being "finalized" – FT

Lending Ukraine the monetary value of Russian assets immobilized in Euroclear is hampered by the uncertain position of EU countries, in particular, Belgium refused to withdraw its objections, and France and Luxembourg are currently expressing concern.

UNN reports with reference to the Financial Times.

DetailsA new FT article explains why the EU is not yet able to resolve the issue of providing Ukraine with a loan of 140 billion euros.

As is known, earlier the European Commission proposed to lend Ukraine the monetary value of Russian assets that have long been immobilized in Euroclear, a Belgian financial institution. The idea is that if Russia does not pay reparations to Ukraine after the war against it, then Russia will lose its rights to the aforementioned assets.

The Commission needs to further investigate the legal and fiscal consequences, so it is not yet possible to adopt the general principle. On the other hand, there is the position of a number of countries. First of all, Belgium.

Belgian Prime Minister Bart De Wever, whose state treasury has benefited from tax revenues collected at Euroclear, is now demanding that the EU “mutually” share the risk of hosting the institution and provide greater legal protection if Moscow takes legal action against Belgium.

De Wever did not communicate with journalists in the context of discussing Russian assets immobilized in Euroclear.

For now, De Wever has opposed the proposal

France and Luxembourg also expressed their concern about the legal consequences in relations with Russia.

What is known about the details of the discussion of Russian assets and the loan to Ukraine

The Financial Times refers to information from one of the EU officials. It is noted that the commission presented the main elements of its approach.

The feedback was constructive, although Belgium raised several legal and technical issues. .. Nevertheless, there is an agreement to continue working on this issue

Ursula von der Leyen, after the summit, told journalists that a “much more detailed full proposal” should be developed.

G7 finance ministers last night agreed that they would “coordinately [use] the full value of [Russian sovereign assets] immobilized in our jurisdictions to end the war and ensure a just and lasting peace in Ukraine,” the FT adds.

RecallThe European Union is developing a scheme to provide Ukraine with new loans totaling 140 billion euros, using frozen assets of the Russian central bank.