Under the European Union’s plan, the EU would borrow funds from the international deposit organisation Euroclear in Belgium that have matured into cash, and the money would in turn be loaned to Ukraine.
The understanding is that any funds Russia pays towards post-war reparations would be used to reimburse the Europeans.
The Kremlin has said the EU plan amounts to “theft” and has threatened to retaliate. Meanwhile, Belgium is seeking guarantees that the bloc would share risks on the plan.
‘We are ready’
G7 leaders are also expected to discuss potential responses to China, after Beijing recently announced fresh export curbs involving the rare earth industry, triggering a fiery response from Washington.
Early Wednesday, US Trade Representative Jamieson Greer slammed China’s move as a “global supply chain power grab,” saying that the United States and its allies would not go along with such a system of controls by Beijing.
Dombrovskis told AFP that although no concrete decisions have been made at the EU level, “we are ready to engage and to coordinate those approaches, including at the G7 level.”
“We are willing to discuss what is the best way to approach it, both in the short-term, but also in the longer term. It’s obvious that we need to work on the diversification of our supply chains,” he said.
EU trade commissioner Maros Sefcovic said Tuesday that the EU is coordinating with G7 partners on a response to China’s rare earths export controls, while engaging with China to find solutions.