ECB refuses to provide backstop for €140bn Ukraine loan

The European Central Bank has refused to backstop a €140bn payment to Ukraine, dealing a blow to an EU plan to raise a ‘reparations loan’ backed by frozen Russian assets.

The ECB concluded the European Commission proposal violated its mandate, according to multiple officials, adding to Brussels’ difficulties in raising the loan against Russian central bank assets immobilised at Euroclear, the Belgian securities depository. 

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Kima — FT social media team