BRUSSELS, Oct. 24– EU leaders failed on Thursday to agree on a plan to use frozen Russian assets to finance new loans for Ukraine, after divisions resurfaced at a European Council summit.
The summit’s conclusions contained significantly softer wording than earlier drafts, reflecting Belgium’s objections and legal concerns raised by the European Central Bank (ECB).
EU leaders reaffirmed their political, economic and military support for Ukraine but stopped short of backing any specific funding mechanism.
The conclusions merely invited the Commission to present, “as soon as possible, options for financial support based on an assessment of Ukraine’s financing needs,” saying that the issue would be revisited at the next EU summit in December.
The document also reiterated that Russia’s assets should remain immobilized until “Russia ceases its war of aggression against Ukraine and compensates it for the damage caused.”
The dispute centers on a proposal outlined by European Commission President Ursula von der Leyen in her September State of the Union address to create a “reparation loan” of around 140 billion euros (about 163 billion U.S. dollars), backed by frozen Russian sovereign assets.
The plan is supported by Germany, France and the Baltic States, but opposed by Belgium and the ECB, which warn that it could breach international law and threaten eurozone financial stability.
Belgium holds most of the Russian central bank assets immobilized by the EU shortly after the conflict began.
Speaking ahead of the summit, Belgian Prime Minister Bart De Wever said he would block the plan unless other EU members agreed to share the financial risks equally, provide guarantees in case frozen assets must later be returned to Moscow, and ensure all countries holding Russian funds act together.
“If we move, we must move all together, that’s European solidarity,” he said, warning he would use all political and legal means to stop the decision if these conditions were not met. (Xinhua)
