EU offered Belgium additional guarantees for agreement on Russian assets: the issue of a loan to Ukraine was moved down the summit agenda
Kyiv • UNN
EU countries have 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.
EU countries have offered additional guarantees in a last-ditch effort to secure Belgium's support for a plan to provide Ukraine with a loan based on 210 billion euros of frozen Russian assets, Politico reports, writes UNN.
Details
One of the most difficult issues in the negotiations is how to raise funds in the unlikely scenario that the Kremlin returns them. Belgium's demand for unlimited guarantees from EU countries was deemed unrealistic by most.
However, EU countries have developed a workaround to extend their guarantees to Belgium without exposing their taxpayers' money to even greater risk, the publication writes.
"Unused assets from the loan will be the first line of defense if the EU has to compensate Russia for damages," according to draft amendments seen by the publication, which were discussed by EU diplomats on Wednesday.
The EU intends to send Ukraine 90 billion euros over the next two years, which means there will be a financial buffer for any potential compensation.
"If the remaining funds are not enough, Belgium can use the financial guarantees provided by EU countries," the publication says.
"The text provides unprecedented coverage, leaving no doubt that the risks are shared by all, and Belgium will not be left alone if we do this. The EU supports them," said one official close to the negotiations.
Meanwhile, at the EU summit, the order of agenda items was changed.
Leaders are moving on to discuss enlargement, instead of delving into the issue of financing Ukraine, as planned. They will return to the main issue of the day later, a senior official said.
Some capitals pressed European Council President António Costa to postpone the talks, citing the political sensitivity of the decision - and, ultimately, they got their way, the publication writes.
"This could be a good sign," said one EU diplomat, suggesting that the delay reflects ongoing technical work outside the leaders' room, as well as efforts to find solutions and reduce potential clashes.