Europe to Lend $105 Billion to Ukraine, Without Touching Russian Funds
European Union officials wanted to use Russia’s frozen assets to back a major loan to Ukraine. Facing opposition in their own camp, they settled on another way.
European Union officials wanted to use Russia’s frozen assets to back a major loan to Ukraine. Facing opposition in their own camp, they settled on another way.
www.nytimes.com
“… That ambitious frozen-asset plan was killed at the 11th hour as European heads of state and government met in Brussels — a show of division that risked making the European Union appear indecisive at a key moment.
Instead, European leaders announced that they will funnel money to Ukraine with a loan backed by the E.U. budget. Because the plan does not leverage the large stash of Russian savings immobilized in Europe, it is likely to cost more and could prove more difficult to quickly scale up than the original idea.
… But the idea of such a loan was always risky: Russia is
already taking legal action over what it paints as the unlawful seizure of its assets. After weeks of back-and-forth, Belgium — where most of the assets frozen in Europe are held — remained unconvinced headed into Thursday’s meeting, worried that it could be on the hook for Russian retaliation.
The guarantees that Belgium demanded to protect against that threat, however, proved too much for some other European countries to quickly accept….”