Why the EU could not agree on using £80bn of frozen Russian assets to fund Ukraine’s war effort
The EU can’t agree on what to do with £80bn of frozen Russian assets – here’s why
- European Union leaders have agreed to loan €90 billion to Ukraine to support its war effort against Russia for the next two years.
- This loan will be financed by borrowing cash backed by the EU budget, rather than utilising frozen Russian assets.
- A deal on using frozen Russian assets could not be reached due to significant divisions within the bloc, particularly from Belgium, which holds the majority of these assets.
- Belgium expressed concerns over the legal and financial risks, fearing potential bankruptcy if Russia successfully challenged the use of its frozen funds.
- The agreement stipulates that Ukraine will only repay the loan to the EU once Russia pays war reparations, with the frozen Russian assets remaining untouched for now.