How have the positions of European countries in terms of Russian assets been divided? Answers to the main questions

The European Union (EU) summit is taking place in Brussels. The main item on the agenda is the allocation of financing to Ukraine for the coming years. One of the ideas being discussed is the allocation of a "reparation loan", which will be secured by Russian frozen assets. Belgium and a number of other countries are opposed to this plan. They offer an alternative in the form of a bond issue. What you need to know about the debate in Brussels and what Russia's position is in the Izvestia article.

Who insists on confiscation?

• The European Union was divided into two camps before the Brussels summit. One of them advocates granting Ukraine a loan secured by frozen Russian assets, while the other rejects such a financing mechanism. Germany is the locomotive of the first group. Its Chancellor Friedrich Merz actively supports the idea of withdrawing Russian funds and calls this the only option for financing Ukraine, which, according to the International Monetary Fund (IMF), needs €137 billion for 2026 and 2027. Ursula von der Leyen, a German citizen and President of the European Commission, is also actively promoting this option.

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• Germany is supported by the Baltic States and Poland. The Prime Minister of the latter, Donald Tusk, also claims that the use of frozen Russian funds has no alternatives. Ireland and Denmark also expressed active support for the "reparation loan". Spain and Greece declared their support for any solution that would ensure Ukraine's financial stability.

Which countries opposed it?

• Belgium itself is the main opponent of granting Ukraine a loan secured by Russian frozen assets. Most of the assets are held in the accounts of the Brussels-based Euroclear depository. Belgian Prime Minister Bart de Wever, until the last moment before the start of the summit, rejected plans to withdraw funds, citing the legal, reputational and financial risks that his country would incur. Even now, before the final decision is made, Fitch is threatening Euroclear with a credit rating downgrade and has sent it for revision with a negative outlook.

• Among the most important EU countries, Belgium is supported by Italy. The two countries, along with Malta and Bulgaria, called on the European Commission a week before the summit to explore alternative ways to use the frozen funds. They called for the development of a certain plan "B", which would not provide for the confiscation of assets.

• Traditionally, Hungary and Slovakia challenge the plans of the European Union. They oppose any further provision of financial assistance to Ukraine. For this reason, there are discussions within the association about making any decisions on Russian assets not unanimously, but by a majority.

What is plan B?

• European countries allow not only granting loans to Ukraine secured by Russian assets, but also other mechanisms for financing it in the coming years. Belgium, Italy, Bulgaria and Malta have proposed an alternative in the form of using unallocated funds from the EU budget as collateral. In this case, the Russian funds will not be touched.

• Such a plan "B" provides that the EU countries will issue joint bonds to finance Ukraine. At the same time, Hungary and Slovakia may be excluded from the general debt repayment scheme in order to gain their support, as this option requires the unanimous support of all countries.

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• At the same time, some of the countries that want to allocate funds secured by Russian assets may also oppose the issue of bonds. Traditionally, the policy of Germany and the Nordic countries is based on avoiding excessive debt burden on government budgets, as they fear a repeat of the financial crises of the early 2010s. At the same time, the current budget situation in France and Italy does not imply that these countries will be ready to further increase their debt in favor of Ukraine.

What position has Russia taken?

• In the midst of the Brussels summit, the Bank of Russia published a message on its further actions in case of confiscation of Russian assets in Europe. The central Bank noted that the EU authorities continue to attempt to illegally seize or use assets, which is confirmed by the recent decision to permanently immobilize them (previously, the European Union extended the freezing decision every six months).

• The Bank of Russia has stated that it will recover losses caused by the illegal blocking and use of its assets from European banks in the Russian arbitration court. In the claims, the regulator will indicate both the amount of illegally held assets and the lost profits due to this. The central Bank has already filed its first lawsuit with the Moscow Arbitration Court against the Euroclear depository.