According to Politico, the European Commission is proposing that EU member states use frozen Russian assets to finance a new loan for Ukraine, this time worth 140 billion euros.
Points of attention
- Key figures like German leader Friedrich Merz endorse the plan, with differing views on whether the loan should be directed solely towards military aid.
- The proposal signals a strategic move by official Brussels to bolster Ukraine and address the ongoing conflict with Russia, emphasizing the importance of cooperation among EU members.
Details of the European Union's new plan for Ukraine
As journalists managed to find out, this initiative was first presented to EU members on the eve of a meeting of EU European ambassadors.
This idea is still being discussed, but its main point is that official Kyiv will repay this loan only after Russia ends the war and pays post-war reparations.
In this case, official Brussels will compensate the costs of Euroclear. What is important to understand is that we are talking about a Belgian financial institution that stores frozen Russian assets.
The European Commission proposes that the loan be provided in tranches and used both for "defense cooperation" and to support Ukraine's regular budgetary needs.
In addition, official Brussels calls for a final change in the rules for extending sanctions — from unanimity to a qualified majority, in order to eliminate Hungary's influence on this process.
German leader Friedrich Merz has already publicly supported the initiative. However, he believes the loan should finance exclusively military aid.
