Official Brussels has approached the European Union with a proposal to activate an emergency provision for issuing joint debt to finance Ukraine's war efforts. This is reported by Euractiv, writes UNN.
Details
This move was Belgium's diplomatic response to increased pressure to use frozen Russian assets, which the country continues to oppose.
Key details of the proposal and current state of affairs:
- Resistance to the "reparations position": Belgium is blocking a plan to provide Kyiv with a 210 billion euro loan backed by Russian assets. The reason is that most of these funds are held in Euroclear - a Brussels depository, and the country fears financial and legal consequences.
- Use of Article 122: The new initiative provides for the application of Article 122 of the EU Treaties. This mechanism allows decisions to be taken by a "qualified majority" (15 countries representing 65% of the bloc's population), which negates the veto power of individual states.
- Indefinite freeze: Last week, EU countries already used this article to make the freeze of Kremlin funds permanent, instead of the traditional extension of sanctions every six months.
According to diplomats, the transition to a joint debt scheme will allow Ukraine to be provided with the necessary resources, while avoiding the direct confiscation of Russia's sovereign assets, which other partners insist on. Currently, EU member states are studying the legal basis for implementing this initiative.
Recall
Belgium opposed the concessions proposed by the European Commission to unblock a 210 billion euro loan for Ukraine from frozen Russian assets.
Ukrainian Foreign Minister Andriy Sybiha stated that the decision on the loan for Ukraine is critically important and urgent.
Italian Prime Minister Giorgia Meloni said on Wednesday ahead of the European Union leaders' summit in Brussels that finding a legal way to use frozen Russian assets to finance Ukraine remains "far from simple."
European Council President António Costa noted that the EU will not impose a reparations loan for Ukraine at the EU leaders' summit on Thursday if Belgium opposes it.