Member states may need to raise billions in joint debt if using frozen Russian assets for a \u201creparations loan\u201d fails, sources told the outlet<\/p>\n
EU countries could be asked to raise tens of billions in joint debt to finance Ukraine if an initiative to use frozen Russian assets for a \u201creparations loan\u201d fails, Politico reported on Monday, citing diplomatic sources.
\nAccording to the report, several leaders discussed this alternative at last week\u2019s EU summit after Belgium refused to back a \u20ac140 billion ($160 billion) Ukraine loan secured by the frozen Russian assets.
\nAlthough the details of the new plan remain unclear, joint debt typically refers to shared borrowing through jointly issued bonds by multiple nations, where all participants share responsibility for repayment.
\nSources said the European Commission will outline the borrowing plan in an upcoming paper alongside a revised \u201creparations loan\u201d proposal, and will include a third option \u2013 to halt Ukraine funding. They suggested the idea could be a \u201cscarecrow\u201d tactic to push EU nations already burdened by debt to vote for using the Russian assets.<\/p>\n
Read more<\/p>\n
Belgium explains failure of EU-Ukraine \u2018reparation loan\u2019 plan<\/p>\n
Western nations froze $300 billion in Russian sovereign assets in 2022 and have sought to use the interest the funds have generated to finance Kiev\u2019s war effort.
\nThe G7 previously supported using the immobilized funds to secure $50 billion in loans, but EU leaders last week failed to agree on a similar \u201creparations loan,\u201d largely due to Belgian opposition.
\nPrime Minister Bart De Wever warned that Belgium, which holds most of the frozen assets, could face disproportionate retaliation from Russia, and demanded a solid legal basis for the move and shared responsibility.
\nSources told Politico that despite legal concerns, Brussels views using frozen Russian assets as the \u201cmost preferred\u201d option to keep funding Kiev. A final decision is expected at the European Commission summit in December.<\/p>\n
READ MORE: Germany is doing to itself what even its defeat in WWII couldn\u2019t<\/p>\n
Moscow has denounced the asset freeze and attempts to redirect Russian funds as \u201ctheft,\u201d vowing retaliation and warning that the move will erode trust in the Western financial system. The Kremlin has also said Western aid to Kiev only prolongs the conflict without changing the outcome.<\/p>\n","protected":false},"excerpt":{"rendered":"
Member states may need to raise billions in joint debt if using frozen Russian assets for a \u201creparations loan\u201d fails, sources told the outlet EU countries could be asked to…<\/p>\n","protected":false},"author":1,"featured_media":21339,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[4,6,3],"tags":[],"class_list":["post-21338","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-environment","category-politics"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t