Post by : Rameen Ariff

The European Union (EU) is moving quickly to agree on a plan to use frozen Russian assets to help support Ukraine. This comes after a recent U.S.-backed peace plan introduced different ideas on how to use these funds. EU officials say the new discussions aim to find a solution that can get support from all member countries.

Last month, EU leaders tried to agree on using 140 billion euros (about $162 billion) of frozen Russian government assets held in Europe as a loan for Ukraine. However, Belgium, where much of the money is kept, did not support the plan. Because of this, the European Commission, which is the EU’s executive body, is preparing a new draft legal proposal. This draft, expected to be presented this week, will try to address Belgium’s concerns and find ways to safely use these frozen assets to support Ukraine’s needs in 2026 and 2027.

Work on this EU plan has been ongoing since October, but the recent U.S.-backed plan has added urgency to the matter. The U.S. plan suggests using part of the frozen funds for reconstruction efforts in Ukraine and proposes a joint investment project between the U.S. and Russia. Many European leaders believe this approach favors Moscow too much and prefer the EU’s idea of lending the frozen Russian central bank assets directly to Ukraine.

Under the EU plan, Ukraine would borrow the 140 billion euros to cover defense and regular government expenses. Ukraine would only repay the loan when it receives war reparations from Russia. This arrangement could ease the financial burden on EU countries, which have been the largest donors to Ukraine since Russia’s invasion in February 2022.

The U.S.-backed plan, which has not been fully released, reportedly suggests investing $100 billion in Ukraine’s reconstruction, with the U.S. receiving half of the profits. It also includes a separate investment fund involving both the U.S. and Russia. European leaders have expressed concern over this, preferring a plan that better supports Ukraine’s immediate financial needs.

A key challenge for the EU is gaining Belgium’s approval because 185 billion euros out of the total 210 billion euros of frozen assets in Europe are held there. Belgium has requested specific legal guarantees, and the European Commission’s upcoming draft proposal will address these in detail.

European Commission President Ursula von der Leyen emphasized the importance of supporting Ukraine. She said in the European Parliament, “We need to support Ukraine to defend itself. We committed ourselves to cover Ukraine’s financial needs in 2026 and 2027. This includes an option on immobilized Russian assets.”

In summary, the EU is working hard to create a clear and legally safe plan to use frozen Russian funds to help Ukraine financially. This plan aims to support Ukraine’s defense and budget needs while ensuring all member states, especially Belgium, feel secure in backing the proposal. This effort shows the EU’s ongoing commitment to assisting Ukraine during the conflict.

#world news #Global News