EU is working on credit for Ukraine from Russian assets
Copenhagen (dpa) – According to the European Commission, EU countries are open to a loan for Ukraine from the custody of frozen Russian assets. “The member states see this as a possible way forward,” said EU Economic Commissioner Valdis Dombrovskis after a meeting with the finance ministers of the member states. Overall, there is a willingness for constructive cooperation.
Work is now continuing on the exact design, Dombrovskis said. Time is pressing: Ukraine needs the financing starting in 2026.
Russian state assets frozen in the EU
Due to the war of aggression against Ukraine, around 200 billion euros of the Russian central bank have been frozen in the EU, according to Commission information. The interest income is already being used to finance weapons and ammunition for Ukraine. Now the EU Commission wants to go further.
The EU Commission is currently working on the design of a new loan for Ukraine, which is to be financed by Russian state assets set in the EU. The rough idea is to make freed Russian assets available to Ukraine as a loan. The EU countries are to guarantee this loan.
Expropriation not planned
This means that the assets themselves remain untouched. Proposals to use the money directly through an expropriation decision are highly controversial. Among others, the German government is skeptical of the idea. There are concerns that other countries might also withdraw their state funds invested in Europe.
How large the loan should be still needs to be determined, said EU Economic Commissioner Valdis Dombrovskis. However, it is already clear that Ukraine should only have to repay the loan once Russia finances reparations in the country. The former EU member Great Britain is planning a similar mechanism. (September 20)
