Belgium has opposed the European Commission's proposed concessions to unblock a 210 billion euro loan for Ukraine, financed by frozen Russian assets, dashing EU hopes of reaching a deal in time for the upcoming leaders' summit on Thursday, reports „Politico“, reports News.bg.
Two days before the deadline, the Commission made a last-ditch attempt to convince member states to support the loan so that billions of euros of Russian assets held at the Euroclear bank in Brussels could be released to support Kiev's war-torn economy.
The 27 EU representatives will continue discussions on the scheme later on Tuesday, after talks to end Russia's nearly four-year conflict in Ukraine showed some progress during a meeting in Berlin between Western leaders and US officials on Monday.
After days of discussions over the assets, the Commission proposed legal changes that would ensure political support from Belgium. According to the latest version of the text, seen by “Politico“, Belgium would be able to benefit from up to 210 billion euros in the event of legal claims or retaliation by Russia. It also specified that Ukraine would not receive funds until EU countries provide financial guarantees covering at least half of the payment.
The Commission further instructed all member states to terminate their bilateral investment treaties with Russia to ensure that Belgium would not be left alone in the event of possible retaliation by Moscow.
However, Belgium believes that the assurances provided during the meeting of EU ambassadors on Monday night are not sufficient, four diplomats told “Politico“. "There will be no deal until the European Council," said one of them, speaking on condition of anonymity.
The Belgian government has refrained from using the Russian assets for fear that it could be forced to pay back the full amount if Russia demands the funds back. A further complication is the support of Bulgaria, Italy, Malta and the Czech Republic for exploring alternative methods of financing Ukraine, such as joint debt.
France continues to publicly support the plan to use the frozen assets, but a source close to President Emmanuel Macron said Paris was "neutral" on whether to use Moscow's assets or resort to Eurobonds to avoid Ukraine's bankruptcy.
Germany and other supporters of the scheme insist that there is no real alternative to using Russian assets. They argue that joint debt is not feasible because it requires unanimity, which allows skeptical leaders like Hungarian Prime Minister Viktor Orban to block the initiative.
“Let us make no mistake. If we fail, the EU’s ability to act will be seriously impaired for years, if not longer,“ warned German Chancellor Friedrich Merz.
However, not all EU countries are convinced. Critics say Germany is pushing for the use of Russian assets for ideological reasons, not real needs. “The narrative is that Hungary is against joint debt for Ukraine. The reality is that frugal countries are against it,“ said an EU diplomat.