“EU officials are outraged by the new “peace plan” of Donald Trump’s special envoy Steve Witkoff, which provides for the United States to profit from the use of frozen Russian assets. European diplomats warn that the American plan could derail critical negotiations on financial aid to Ukraine and undermine efforts to agree on a “reparation loan” that Kyiv needs to counter Russian aggression.”, — write: www.pravda.com.ua
Steve Witkoff. Photo: Getty Images Source: Politico
Details: Donald Trump has derailed one of the most sensitive negotiation processes currently underway in Europe, and may derail efforts to provide financial assistance to Ukraine in its fight against Russia.
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For months, European Union officials have been trying to find a way to use some 140 billion euros of frozen Russian sovereign assets, mostly held in Belgium, to support Kyiv. These funds are urgently needed, as Ukraine risks being left without funding at the beginning of next year.
According to diplomats, negotiations in Brussels are at an extremely delicate stage, as high-ranking officials are trying to finalize the legal mechanism that will allow the frozen assets to be used to provide a loan to the Ukrainian government.
However, the new 28-point US ceasefire plan includes an alternative idea of using these same assets to rebuild Ukraine under US leadership after the ceasefire. According to the document, the US will receive “50 percent” of the profits from such activities.
President of Ukraine Volodymyr Zelensky warned that Trump’s new plan puts the country in front of one of the most difficult moments in its history – a potential choice between losing “dignity” and losing a “key partner”.
Many EU diplomats and officials have said they fear the consequences of Trump’s special envoy Steve Witkoff’s initiative. Officials say that the US administration’s “peace initiatives” could destroy their chances of agreeing a loan among the 27 EU member states.
“The Europeans are exhausting themselves trying to find a viable solution for the use of assets for the benefit of Ukrainians, and Trump wants to profit from this,” said one of the newspaper’s interlocutors.
One senior EU official in Brussels scoffed at Trump’s plan, saying that no matter what he wanted, he did not have the authority to unfreeze assets held in Europe. An EU government official used an expletive to express his outrage, while one senior EU official said: “Witkoff needs to see a psychiatrist.”
The question of how to use frozen Russian assets is one of the most difficult for Ukraine’s allies, given the numerous legal, political, security and economic risks. Most problematically, the assets are mostly held at the Belgian Euroclear facility, making Belgium excessively vulnerable to possible Russian countermeasures.
The EU’s idea is to use these assets to give Ukraine a loan that would only have to be repaid if Russia agreed to pay Kiev reparations.
However, Belgium is hesitant to approve this plan, fearing that it will have to bear the financial responsibility if Russia tries to recover these funds. This has caused serious disagreements between Belgium and other EU members, who are pushing for faster action to support Ukraine.
Diplomats and EU officials said on Friday that Trump’s plans would further complicate efforts to persuade Belgium to agree to a “reparation loan” to Ukraine. One EU government official said the US plan was an argument against further work on the loan, as the EU would come under pressure from Trump.
Prehistory:
- On Friday, the President of Ukraine Volodymyr Zelenskyy held telephone talks with the leaders of Germany, France and Great Britain to coordinate further steps.
- Earlier, the Financial Times, citing high-ranking Ukrainian officials and people familiar with the progress of the negotiations, reported that the administration of Donald Trump is putting strong pressure on Ukraine, demanding to agree to the US-Russian peace plan by November 27.