European Union countries are open to guaranteeing a loan for Ukraine, financed with frozen Russian assets, DPA reported, quoted by BTA.
Member states see this as an opportunity, said EU Commissioner for Economic Affairs Valdis Dombrovskis after a meeting with the bloc's finance ministers today. He added that work on the details of the plan is ongoing and that the size of the loan has not yet been determined.
However, it is now clear that Ukraine will have to repay the loan only after Russia starts financing reparations for Ukraine. Britain, a former EU member, is planning a similar mechanism.
Because of Russia’s war in Ukraine, around €200 billion in assets of the Russian Central Bank are frozen in the EU.
The interest on these assets is already being used to finance arms and ammunition for Ukraine, but now the European Commission wants to go further. The Brussels-based body is currently working on a new loan for Kiev that would be financed with Russian state assets frozen in the EU. The rough idea is to provide them to Ukraine as a loan, with EU member states guaranteeing the loan, DPA adds.
The assets themselves would remain intact, as proposals for their direct use through confiscation are highly controversial.
The German government and authorities in other countries are skeptical of the idea, citing concerns that other countries could withdraw their state funds invested in Europe.