Zelensky Urges EU to Approve Multi-Billion Euro Loan Using Frozen Russian Assets
Ukrainian President Volodymyr Zelensky has called on EU leaders at a crucial summit to approve a multi-billion euro loan to Ukraine, sourced from frozen Russian assets in Europe. He emphasized that the funding is urgently needed by spring to support Ukraine's military and economy and to prevent cuts in drone production.
Currently, EU assets frozen in Europe total approximately €210 billion, mostly held by Euroclear, a Belgium-based clearing organization. Russia has strongly objected to the use of these funds, and has filed a court case in Moscow to reclaim them. Russian President Vladimir Putin criticized Europe and mockingly addressed Ukraine's European allies in light of these developments.
The European Commission has proposed a loan of about €90 billion over two years, intended to cover roughly two-thirds of Kyiv's estimated €137 billion funding gap through 2026-27. An alternative plan under consideration involves the EU borrowing on international markets backed by the EU budget as a guarantee, but this requires unanimous approval from all member states.
However, opposition exists within the EU. Hungary's Prime Minister Viktor Orbán opposes providing more EU funds to Ukraine, and Belgium and Slovakia have also expressed concerns. Any decision requires a majority of 15 member states representing 65% of the EU population. EU leaders have committed to not bypass Belgium in the decision-making process and to consider Belgium's position carefully.
Belgium fears potential legal liability if courts order the frozen funds to be returned to Russia. The credit rating agency Fitch has placed Euroclear on negative watch due to these potential legal risks. Italy's Prime Minister Giorgia Meloni has stated she would support the deal, provided there is a solid legal basis for using the frozen assets.
This issue is also intertwined with ongoing US-Russia peace discussions and related diplomatic activities, making it a complex and delicate matter for European leaders to resolve.
