IMF commented on EU discussions on frozen Russian assets from Euroclear to support Ukraine: reiterated warnings
Kyiv • UNN
The IMF welcomes discussions in Europe on the use of frozen Russian assets to support Ukraine. The Fund emphasizes compliance with international law and non-disruption of the functioning of the global monetary system.
The IMF welcomes active discussions in Europe regarding financial support for Ukraine, including the use of frozen Russian assets, particularly those held in the Belgian financial depository Euroclear, and at the same time reiterated its advice that "any actions related to the use of immobilized Russian assets must comply with international and domestic law and not undermine the functioning of the international monetary system," as stated by IMF spokesperson Julie Kozack at a briefing on December 4, writes UNN.
Regarding the issue of Russian assets. Here I can say that we welcome the active discussions in Europe regarding support for Ukraine and the goal of doing so in a way that is consistent with restoring Ukraine's debt sustainability. We are closely following these discussions, of course, including options that involve the use of Euroclear's cash balances generated by immobilized Russian assets, while preserving Russia's underlying claim.
And just a reminder that IMF staff and management have consistently advised that any actions related to the use of immobilized Russian assets must comply with international and domestic law and not undermine the functioning of the international monetary system. And we are confident that [Russian] European policymakers appreciate these important considerations.
Addition
Belgium fears that Russia will take retaliatory measures against the country both at home and abroad, and demands ironclad financial guarantees from EU capitals before it will even consider supporting the European Commission's proposal to use frozen Russian assets in Euroclear to provide a "reparation loan" to finance Ukraine.
German Chancellor Friedrich Merz canceled a trip to Oslo and will arrive in Brussels on December 5 for a private dinner with the European Commission leadership to persuade the Belgian leadership to support a "reparation loan" to Ukraine worth 165 billion euros.
EU leaders are expected to discuss the initiative in Brussels on December 18. Failure to reach an agreement could force EU governments to use taxpayer money to provide funding for Ukraine.