EU Urged to Utilize Frozen Russian Assets for Ukraine’s Reparation Loan Amidst Ongoing Crisis
EU Faces Urgent Decision on Russian Frozen Assets to Support Ukraine
Brussels, Belgium — The European Union is under increasing pressure to expedite a groundbreaking plan to utilize frozen Russian assets as a reparations loan for Ukraine, according to EU Ambassador to Ukraine, Katarína Mathernová. In an interview with Euronews on the flagship morning show Europe Today, Mathernová emphasized the urgency of the situation, stating that immediate action is necessary to provide Ukraine with a steady stream of funding for its military and budgetary needs in the coming years.
As the conflict in Ukraine continues to escalate, the EU is exploring innovative solutions to support Kyiv. The proposed plan would convert billions in frozen Russian assets, currently held in the Euroclear depository in Belgium, into a reparations loan. However, the Belgian government, led by Prime Minister Bart De Wever, has expressed strong reservations, labeling the initiative as "fundamentally wrong."
In a letter to the European Commission, De Wever articulated his concerns, warning that the reparations loan could violate international law and create instability in financial markets. "With this proposal, we would not only violate a fundamental principle of international law, but we would also instigate uncertainty and fear into financial markets," he wrote.
Despite these objections, Mathernová insists that moving forward with the plan is crucial. "It would send an important signal not only to Ukraine but to Russia and the rest of Europe that we will stand with Ukraine," she stated. The stakes are high, she noted, as Ukraine faces severe economic challenges exacerbated by ongoing Russian attacks on its energy infrastructure, leading to widespread blackouts lasting up to 20 hours.
As diplomatic discussions intensify at the highest levels of the Belgian government and European authorities, the clock is ticking. EU leaders are set to convene for a critical summit in December, where a decision on the reparations loan will be made. Ukraine has made it clear that it requires emergency funding in the first quarter of next year to sustain its efforts.
"The people of Ukraine are exhausted and want peace," Mathernová remarked, underscoring the humanitarian aspect of the crisis. "But it must be a just peace."
As the EU grapples with this pivotal decision, the future of Ukraine hangs in the balance, with the potential for significant implications not only for the war-torn nation but for the stability of Europe as a whole.
Contributions to this report were made by Jorge Liboreiro and Maria Tadeo.
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