Europe mulls using frozen Russian assets to fund loan to Ukraine
How Europe aims to support Ukraine using seized Russian assets
- European Union leaders are considering a plan to provide long-term financial and military support to Ukraine, utilising hundreds of billions of pounds in frozen Russian assets.
- This initiative aims to independently bolster Kyiv's defences, particularly as the United States has ceased financial aid and reduced weapons provisions to Ukraine.
- The proposal involves a new "reparation loan" of approximately €140 billion, secured by around €194 billion in frozen Russian assets, with the largest portion held in Belgium.
- Russia has vehemently condemned the plan, branding it "theft," but the European Commission clarifies it is a loan to Ukraine, repayable only if Russia pays reparations.
- Agreement from all 27 member countries is required, and while some legal and political concerns exist, many EU leaders view the plan as a sound way forward.