The European Union is discussing ways to use frozen Russian assets to support a so-called "reparations loan" to Ukraine to bolster its wartime finances and avoid the risk of a veto from Moscow-friendly Hungary. This was reported by Reuters, citing unnamed officials "involved in the project," informs UNN.
Details
It is noted that, according to EU plans, Ukraine will repay the reparations loan only after receiving compensation from Russia for the damage caused during the war. This concept was proposed by European Commission President Ursula von der Leyen last week, at a time when US President Donald Trump is limiting direct military aid to Kyiv from Washington.
Any such loan must be designed to avoid a veto from Hungary, which is the most pro-Moscow of all 27 EU member states and whose purchases of Russian oil this week have been a source of irritation.
It is also indicated that a new mechanism could be created by a "Coalition of the Willing" rather than all 27 EU governments if Budapest does not want to participate.
We had a first preliminary discussion of the idea of a new loan. But so far, many things, including the amounts, are unclear.
Moving assets from the Belgian depository Euroclear, according to officials, will provide more flexibility for investments and allow for higher returns.
"To avoid pressure on the EU due to vetoes from individual countries, an intergovernmental agreement will most likely be concluded," another source told the publication.
Recall
According to Bloomberg, European governments and G7 allies are seeking to expand the use of frozen Russian assets to finance Ukraine. This comes amid pressure from Donald Trump and a change in Germany's position, which now supports maximizing the profitability of the funds.