Loan instead of frozen Russian assets to finance Ukraine's defense: what experts and investors say about the EU's decision

European Union leaders have decided to borrow money to finance Ukraine's defense against Russia, rather than using frozen Russian assets. In doing so, they decided to avoid disagreements to secure a 90 billion euro loan. This is reported by UNN with reference to Reuters.

Details

The opinions of investors, as well as experts and analysts, on this matter are divided: some disagree that freezing Russian assets will undermine the role of the euro. Others believe that this indicates a certain restraint in making decisions regarding the acquisition of frozen Russian assets.

Another group of experts and investors believes that a major risk of using Russian assets to finance Ukraine's military actions is the depreciation of European government securities. This could lead to an increase in sovereign bond yields, and could also slightly increase the fiscal burden in Europe.

Recall

EU countries offered additional guarantees to Belgium to support a plan to provide Ukraine with a 210 billion euro loan from frozen Russian assets. Unused loan funds will be the first line of defense if the EU has to compensate Russia for damages.