EU Fails to Agree on €140bn Loan for Ukraine

The European Union countries could not agree on a plan to provide a 140 billion euro loan to Ukraine, which was planned to be secured by frozen Russian assets. During the summit in Copenhagen, Belgium, where most of the Russian reserves are located (about 190 billion euros), blocked the discussion of this initiative.

This is reported by the Financial Times, citing its sources. The main reason for Belgium's position is the issue of financial risk distribution. Brussels insists that if Russian assets are used as collateral for a loan, the risk of possible financial losses should be proportionally distributed among all 27 member states of the European Union, and not be borne solely by the country where these assets are held. Belgian Prime Minister Alexander De Croo stated that his country cannot assume such a responsibility alone.

The plan proposed by the European Commission does not involve the direct confiscation of Russian assets. Instead, they were to be used as security (collateral) to attract funds for Ukraine. This scheme envisaged that Russia would be able to get back its frozen assets only after paying war reparations to Ukraine after the end of the war, which would then repay the loan provided.

Despite Belgium's veto, some EU leaders generally reacted positively to the idea. However, they demanded that the European Commission thoroughly study and present all the legal and financial consequences of the program before making a final decision. French President Emmanuel Macron noted that the program is "smart" but requires clarification of technical details. It is expected that the European Commission will continue to work to find a legal and financial solution acceptable to all.