Dec. 3 (UPI) — The European Commission on Wednesday proposed using $163.2 billion of Russia’s frozen assets as a loan to help Ukraine defend itself against its neighbor, a plan Belgian leaders opposed.
European Commission President Ursula von der Leyen said the reparations loan would give Ukrainians “the means to defend themselves.”
“And take forward peace talks from a position of strength,” she said.
“We are putting forward solutions to support Ukraine’s budget and strengthen its defense industry.”
Von der Leyen said a $104.9 billion loan would cover most of Ukraine’s needs for the next two years, with the rest of the funding coming from “international partners,” The Guardian reported.
But Belgium, which hosts most of Russia’s frozen assets, expressed concerns with the idea, suggesting it would jeopardize peace talks, the BBC reported. Russia also condemned the idea, threatening legal action if it comes to fruition.
Belgium has instead proposed a loan from the European Union based on common borrowing. EU officials said a combination of the two options could be possible, but said using Russia’s assets would be the preferred method.
“We keep on pleading for an alternative, namely the EU borrowing the amounts needed on the market,” said Belgian Foreign Minister Maxime Prévot.
EU leaders were expected to vote on a reparations loan at a meeting in Brussels later in December, the BBC reported.
