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EU Moves Toward $163 Billion Ukraine Loan Using Profits from Frozen Russian Assets
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![Photo of Roman Kohanets]( "Photo of Roman Kohanets")
-111f0e5095e02c02446ffed57bfb0ab1.jpeg "Photo of Roman Kohanets")
The European Union is preparing to instruct the European Commission to draft a legal proposal for a large loan to Ukraine backed by profits from Russian state assets immobilized in the bloc, after Belgium indicated it would not stand in the way of the scheme, according to Politico on October 21.
EU leaders have repeatedly framed the approach as making Russia’s resources support Ukraine’s defense and reconstruction without seizing the underlying principal. “There could be no stronger symbol and no greater use for that money than to make Ukraine and all of Europe a safer place to live,” European Commission.
Belgium has sought risk-sharing guarantees because Euroclear, based in Brussels, holds the bulk of the immobilized Russian reserves. Belgium has also been taxing the profits Euroclear earns on these frozen cash balances.
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Next steps would see the European Council invite the Commission to present a legal design for the loan and associated guarantees. Politico reported that the initiative aims to establish “European solidarity and risk-sharing,” addressing Belgium’s concerns over legal exposure due to Euroclear’s central role.
The EU and G7 partners continue consultations to ensure any arrangement complies with international and EU law, preserves the principal of Russia’s sovereign assets for future reparations, and provides stable financial support for Ukraine as the war endures.
Earlier, it was reported that the European Commission is exploring a “reparations loan” for Ukraine using frozen Russian assets as collateral, with the size of the loan to be guided by the International Monetary Fund assessment of Ukraine’s needs.
