President Volodymyr Zelensky urged the European Union to advance plans to fund Ukraine’s war effort with a “reparations loan” funded by Russian assets frozen in Europe on Thursday.
As per AFP, the president told reporters in Brussels that he hopes EU leaders will make a “positive decision” to help Ukraine with funds.
“Russia brought war to our land, and they have to pay for this war,” he added.
The loan, first proposed by President of the European Commission Ursula von der Leyen in September, is so-named because Ukraine would not be required to repay the loan until it has received financial reparations from Russia after the war.
Despite being backed by the nearly $200 billion worth of Russian assets immobilized in Europe, the proposed loan skirts the legal issues associated with confiscating them by converting them into bonds.
However, the bill has faced opposition from within the EU – initially from Hungary’s pro-Russian government. The bill’s proponents found a way to bypass Budapest’s veto by dealing with willing European governments directly.
Belgium’s objections pose a more serious threat. Because the majority of Russian assets frozen in Europe are held in its Euroclear bank, the country fears it may be held liable for repaying the loan if it is found to be on shaky legal ground.
The European Commission is reportedly soliciting the involvement of other G7 countries where Russian assets are held to help assuage Brussel’s concerns. However, it took another knock on Monday when Bloomberg reported that the US has declined to be involved.
Nevertheless, Zelensky described Thursday’s talks between EU leaders on the subject of the loan as “maybe not simple” but “very good.”
The loan’s proponents within the EU are hoping to secure the initial approval of European leaders to draft its legal framework during Thursday’s talks.