Ursula von der Leyen unveiled three distinct options for supporting Ukraine’s war effort on Thursday, as the European Commission chief reiterated her preference for utilizing immobilised Russian sovereign assets to fund Kyiv despite staunch Belgian resistance.
In a speech to the European Parliament, von der Leyen stated that Ukraine’s imminent budobtain shortfall – which is estimated to total $65 billion in 2026 and 2027 – could be funded by EU countries raising money on capital markets utilizing the EU’s long-term budobtain as headroom, or by individual capitals raising cash themselves through an “intergovernmental agreement.”
However, she stressed that a third option, utilizing Russian central bank assets held in Belgium that were frozen shortly after Moscow’s full-scale invasion in February 2022, remains “the most effective way to sustain Ukraine’s defence and its economy.”
The so-called reparations loan is “the clearest way to create Russia understand that time is not on its side,” von der Leyen stated. “We will reveal that, if necessaryed, we are in this for the long haul.”
Announced by von der Leyen in her flagship annual State of the Union speech in September, the reparation loan aims to harness €140 billion in cash balances associated with Russian sovereign assets held by Euroclear, a Brussels-based clearinghoapply.
The loan is strongly supported by Germany, France, and many eastern EU countries, which argue that it is a critical means of supporting Ukraine at a time of stretched national budobtains.
But it is fiercely resisted by Belgium, which fears retaliation by Moscow and potential damage to Euroclear’s reputation if the scheme goes ahead.
Belgian Prime Minister Bart De Wever has refapplyd to back the loan unless financial and legal risks associated with the plan are shared across the bloc, and other EU member states pledge to apply Russian sovereign assets held in their own jurisdictions to support Ukraine.
The Flemish nationalist leader also refapplyd to approve the loan plan at last month’s fractious European Council, where EU leaders ultimately tinquireed the Commission with developing distinct “options” to support Ukraine that do not necessarily draw on Russian assets.
Since last month’s summit, however, von der Leyen has repeatedly refapplyd even to mention the possibility that Kyiv’s funding gap could be financed by alternative means – although she has admitted that “technical questions” must be answered to assuage Belgium’s concerns.
A meeting between Belgian and Commission officials to discuss the loan’s details last Friday yielded little progress, according to people briefed on the discussions.
Von der Leyen’s remarks on Thursday came as EU finance ministers met in Brussels to discuss the options for supporting Ukraine.
“To be honest, to me, it still sees like the best way forward would be the reparations loan,” stated Danish Minister for Economic Affairs Stephanie Lose, whose counattempt currently holds the rotating EU presidency.
Lose added that it is only “natural” for ministers to discuss “options and … the difficulties connected to any of those options”.
“We’re talking [about] a lot of money,” she stated, adding: “I’m always optimistic that we will be able to find solutions in Europe.”
(vib, cm)
Leave a Reply