Leaders of the EU’s 27 member countries postponed to December the decision about whether to use frozen Russian assets to back a loan to fund Ukraine’s war effort in Brussels on Thursday.
As per Euronews, EU leaders instructed the European Commission to continue its efforts to find funding for Ukraine. But, regarding the proposed $140 billion “reparations loan” backed by Russian assets immobilized in Europe, the text of the summit’s conclusions is non-committal.
“Subject to EU law, Russia’s assets should remain immobilised until Russia ceases its war of aggression against Ukraine and compensates it for the damage caused by its war,” it reads.
The reparations loan, so-called because Ukraine would not have to repay it until it receives compensation from Russia after the war ends, has hit a sticking point in the form of opposition from Belgium.
The majority of the nearly $200 billion in Russian assets frozen in Europe are held in Belgium’s Euroclear bank, leading Belgian Prime Minister Bart De Wever to set conditions for his government’s support of the loan.
De Wever’s demands are for the “full mutualization” of risks posed by the loan (for example, in the event of a successful legal claim filed by Russia), a guarantee that every EU member state will be responsible for repaying the loan if the assets are unfrozen, and the participation of every European country that holds Russian assets.
Going into Thursday’s talks, De Wever described his three demands as “quite reasonable” and said that Brussels will move forward with the loan if they are met.
“If not, I will do everything in my power at the European level and also at the national level, politically and legally, to stop this decision,” he pledged.
Earlier on Thursday, President Volodymyr Zelensky urged EU leaders to support the proposal – telling reporters that “Russia brought war to our land, and they have to pay for this war.”