European Commission President Ursula von der Leyen said on Thursday that using frozen Russian assets to finance a new loan was the “most effective way” to support Ukraine, as she presented other options after Belgium opposed the proposal.
The 27-member European Union is scrambling to find new sources of funding to help Kiev fill widening budget gaps as the war in Ukraine enters its fourth year.
The European Commission proposed a plan according to which the assets of the Russian central bank, frozen in Belgium, would be used to generate a loan of 140 billion euros that would be intended for the reconstruction and defense of Ukraine.
However, the Belgian government expresses concern that such a move could lead to legal consequences and possible retaliation from Moscow.
– We are working closely with Belgium and all member states to work out the options – said von der Leyen to the representatives of the European Parliament, stressing that the plan with Russian assets remains “the best and clearest solution”.
– This is the most effective way to ensure support for Ukrainian defense and economy, but also for Russia to understand that time is not working in its favor – said the President of the Commission.
Von der Leyen also mentioned two alternative possibilities in case Belgium does not agree. The first is to use the flexibility in the EU budget to raise money on the capital markets, and the second is for member states to raise funds together.
However, European officials warn that both options would represent a greater financial burden for member states at a time when national budgets are under pressure.
Diplomats say that von der Leyen, by presenting these alternatives, is trying to increase the pressure on Belgium to agree to the use of frozen Russian funds.
European officials hope that an agreement on the financing plan for Ukraine will be reached at a summit of EU leaders scheduled for December.
(Vijesti.ba)
