Reuters
The European Union agreed on Friday to indefinitely freeze Russian central bank assets held in Europe, removing a big obstacle to using the cash to help Ukraine defend itself against Russia.
The EU wants to keep Ukraine financed and fighting as it sees Russia's invasion as a threat to its own security. To do so, EU states aim to put to work some of the Russian sovereign assets they immobilised after Moscow's 2022 invasion of Ukraine.
A first big step, which EU governments agreed on Friday, is to immobilise 210 billion euros ($246 billion) worth of Russian sovereign assets for as long as needed instead of voting every six months on extending the asset freeze.
This removes the risk that Hungary and Slovakia, which have better relations with Moscow than other EU states, could refuse to roll over the freeze at some point, forcing the EU to return the money to Russia.
The indefinite asset freeze is meant to help convince Belgium to support the EU's plan to use the frozen Russian cash to extend a loan of up to 165 billion euros to Ukraine to cover its military and civilian budget needs in 2026 and 2027.
The loan would be paid back by Ukraine only when Russia pays Kyiv war damages, making the loan effectively a grant that advances future Russian reparations payments.
EU leaders - the European Council - are to meet on December 18 to finalise details of the reparations loan and resolve remaining problems, which include guarantees from all EU governments for Belgium that it would not be left alone to foot the bill should a potential Moscow lawsuit prove successful.
Before that, Ukrainian President Volodymyr Zelenskiy will visit Berlin for talks with German Chancellor Friedrich Merz on Monday, with further European, EU and NATO leaders joining them later, the German government said.
Ukrainian Prime Minister Yulia Svyrydenko, writing on X social platform in English, praised the decision as a "landmark step toward justice and accountability".
"This decision strengthens the foundation for the reparations loan mechanism and brings us closer to a future in which Russia pays for its crimes and destruction caused," she wrote.
Germany sees no alternative to the reparations loan and would provide 50 billion euros in guarantees, European diplomatic sources said.
Danish Finance Minister Stephanie Lose, whose country holds the rotating EU presidency, told reporters "some worries" still needed to be addressed but "hopefully we'll be able to pave the way towards a decision at the European Council next week."
European Commissioner for Economy Valdis Dombrovskis said solid guarantees were being put together for Belgium.
The EU wants to keep Ukraine financed and fighting as it sees Russia's invasion as a threat to its own security. To do so, EU states aim to put to work some of the Russian sovereign assets they immobilised after Moscow's 2022 invasion of Ukraine.
A first big step, which EU governments agreed on Friday, is to immobilise 210 billion euros ($246 billion) worth of Russian sovereign assets for as long as needed instead of voting every six months on extending the asset freeze.
This removes the risk that Hungary and Slovakia, which have better relations with Moscow than other EU states, could refuse to roll over the freeze at some point, forcing the EU to return the money to Russia.
The indefinite asset freeze is meant to help convince Belgium to support the EU's plan to use the frozen Russian cash to extend a loan of up to 165 billion euros to Ukraine to cover its military and civilian budget needs in 2026 and 2027.
The loan would be paid back by Ukraine only when Russia pays Kyiv war damages, making the loan effectively a grant that advances future Russian reparations payments.
EU leaders - the European Council - are to meet on December 18 to finalise details of the reparations loan and resolve remaining problems, which include guarantees from all EU governments for Belgium that it would not be left alone to foot the bill should a potential Moscow lawsuit prove successful.
Before that, Ukrainian President Volodymyr Zelenskiy will visit Berlin for talks with German Chancellor Friedrich Merz on Monday, with further European, EU and NATO leaders joining them later, the German government said.
Ukrainian Prime Minister Yulia Svyrydenko, writing on X social platform in English, praised the decision as a "landmark step toward justice and accountability".
"This decision strengthens the foundation for the reparations loan mechanism and brings us closer to a future in which Russia pays for its crimes and destruction caused," she wrote.
Germany sees no alternative to the reparations loan and would provide 50 billion euros in guarantees, European diplomatic sources said.
Danish Finance Minister Stephanie Lose, whose country holds the rotating EU presidency, told reporters "some worries" still needed to be addressed but "hopefully we'll be able to pave the way towards a decision at the European Council next week."
European Commissioner for Economy Valdis Dombrovskis said solid guarantees were being put together for Belgium.
