EU's Mixed Signals on Ukraine Aid: Money Promised, But Not From Frozen Russian Funds
Key Points
- Financial Commitment: EU leaders have promised substantial financial aid to Ukraine for the next two years, focusing on military and defense needs.
- Frozen Russian Assets: While the assets remain frozen, there is no explicit agreement to use them for a 140 billion euro "reparation loan."
- Belgium's Concerns: Belgium played a pivotal role in shaping the final decision, ensuring shared risks and costs among EU members.
Detailed Summary
EU leaders have committed to providing significant financial support to Ukraine over the next two years, with a particular emphasis on military and defense funding. However, they did not reach an agreement on utilizing frozen Russian assets to provide Ukraine with a substantial loan.
The leaders instructed the European Commission to explore various options for financial assistance. They also emphasized that Russia's frozen assets should remain frozen until Russia ceases its aggression against Ukraine and compensates for the damages incurred. Despite initial discussions about using these assets for a "reparation loan" worth approximately 140 billion euros, this provision was ultimately removed from the final agreement.
Many EU diplomats were taken aback by the removal of the sentence that requested concrete proposals for utilizing the cash from frozen Russian assets. Belgium's Prime Minister, Bart De Wever, was instrumental in this decision. He presented three key demands:
- Shared Risk: Ensuring that Belgium would not bear all the risks alone.
- Shared Costs: Ensuring that all EU members would share the costs of any legal action that Russia might take.
- Inclusive Scheme: Ensuring that frozen assets held by other countries would be part of the scheme.
Prime Minister De Wever made it clear that if his demands were not met, he would use all available means to block the decision. He stressed the importance of transparency regarding the risks and the legal basis for the decision.
