The EC approved the mechanism of a "reparation loan" for Ukraine at the expense of Russian assets: details

The Board of the European Commission has approved a "potential reparation loan" for Ukraine, which implies the withdrawal of frozen Russian assets, while a number of states oppose such a decision. At the same time, the EC has developed an alternative financing option for Kiev. All the details are in the Izvestia article.

What is known about the proposals of the European Commission

The EC Board has approved proposals on financing Ukraine for the coming years. One option is to approve a "potential reparation loan," which implies the forced withdrawal of sovereign Russian assets in Europe.

It is noteworthy that the expropriation of Russia's assets, according to the decision of the EC Board, will not require the consensus of all member states of the union, but will be approved by a "qualified majority of votes." Moreover, the EC intends to prohibit the execution of foreign court decisions within the European Union as a response to the expropriation of assets by the Russian Federation.

EC President Ursula von der Leyen noted that Ukraine needs €135 billion by the end of 2027 to continue fighting and the functioning of the state. She proposed approving the coverage of two thirds of Kiev's financial needs for the next two years in the amount of €90 billion. The remaining part is supposed to be attracted from "international partners".

At the same time, the EC has also developed an alternative financing option for Ukraine — borrowing, which will be based on the EU budget (the "reserve fund").

"This is a borrowing of EU funds. This is basically raising capital in the capital markets and using the EU budget as a guarantee for this, and then transferring this capital as a loan to Ukraine. This decision must be made unanimously," von der Leyen stressed.

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The reaction of Russia and Belgium

Russian Foreign Ministry spokeswoman Maria Zakharova commented on the statements of European politicians, noting the collective responsibility of Western countries for such decisions.

"Mutual responsibility," she wrote, referring to the UK's support for the initiative and an attempt to extend the practice of confiscation to the EU. Zakharova pointed out that such measures had not previously been applied in Belgium, while London had already resorted to them.

On November 27, Russian President Vladimir Putin said that the confiscation of Russian assets located in the European Union would have negative consequences. In particular, the Russian government is developing a package of retaliatory measures.

According to the Belgian authorities, the confiscation of Russian assets is the riskiest option for financing Ukraine. Belgian Foreign Minister Maxime Prevost said that the country insists on using borrowing in the capital markets. He noted that the European Union demands solidarity in relation to Russian assets, but does not offer similar guarantees in return.

All important news is on the Izvestia channel in the MAX messenger.