EU envoys back loan to Ukraine financed by frozen Russian assets – media
EU envoys have agreed on a draft initiative to provide a "reparation loan" to Ukraine at the expense of frozen Russian assets, Politico reported on Tuesday, citing a document.
"EU ambassadors informally agreed draft European Council conclusions seen by POLITICO that call on the Commission to put forward a proposal that is underpinned by appropriate European solidarity and risk-sharing," the report notes.
The European Commission "has been waiting for the explicit blessing of European heads of state and government" before it moves ahead with a concrete proposal. The publication acknowledges the possibility that this could occur at the EU summit on October 23.
At the same time, Politico notes that, even after EC approval, negotiations with EU governments could take weeks.
The publication recalls that, among EU member states, Belgium — where the Euroclear depository, which stores these funds, is located — has taken the most "cautious approach" to using the blocked Russian funds.
However, a source in Belgian diplomatic circles told Politico that the country will not object to the EC's proposal regarding the use of the assets at the October 23 summit.
Previous reports indicated that the European Commission is considering using approximately EUR 170 billion of frozen Russian assets held in the Euroclear financial depository in Brussels. It is expected that EUR 140 billion of these funds will be allocated to a "reparation loan" for Ukraine. This issue is expected to be discussed at the EU summit on October 23-24.
