EU Leaders Convene for Critical Ukraine Support Discussions
On Thursday, European Union heads of state are assembling in Brussels for a summit where approving substantial financial assistance for Ukraine will be the primary agenda item. The gathering aims to secure funding for Ukraine's defense and economic requirements over the coming two years.
While migration, enlargement policies, and trade matters will also be addressed, the most pressing task involves determining how to provide the 137 billion euros that the International Monetary Fund estimates Ukraine requires due to the ongoing conflict. European Commission President Ursula von der Leyen emphasized the situation's critical nature, stating to EU lawmakers: "It is up to us to choose how we fund Ukraine’s fight. We know the urgency. It is acute. We all feel it. We all see it."
European Council President António Costa, who is presiding over the Brussels meeting, has committed to continuing negotiations until a consensus is achieved, regardless of how long it takes.
Debate Over Frozen Russian Assets
A significant proposal under consideration involves utilizing tens of billions of euros from Russian assets frozen in Europe to support Ukraine's military and economic needs. This unprecedented move carries substantial risks, as noted by the European Central Bank, which has cautioned that seizing foreign funds could weaken confidence in the euro currency. Additionally, some member states worry about potential retaliation from Russia.
Belgium, where most of these frozen assets are held at the Euroclear financial clearing house, strongly opposes this approach. The country fears Russian countermeasures and prefers that the EU borrow the necessary funds on international markets instead. Recently, the Russian Central Bank filed a lawsuit against Euroclear in a Moscow court, increasing pressure on Belgium and its European allies ahead of the summit.
Member State Objections and Alternative Proposals
Hungary and Slovakia have expressed opposition to von der Leyen's proposed "reparations loan," which would provide approximately 90 billion euros to Ukraine until Russia ends the war and compensates for damages. Ukrainian President Volodymyr Zelenskyy has stated that total damages exceed 600 billion euros.
To cover amounts beyond the 90 billion euros, contributions from the United Kingdom, Canada, and Norway are anticipated. However, Bulgaria, Italy, and Malta also require convincing, and EU diplomats have been working in recent weeks to resolve differences among the 27 member nations. If sufficient objections remain, the plan could be halted, and there is currently no majority backing for an alternative approach of raising funds on international markets.
