The latest version of the EU proposal to support Ukraine using Russian assets is closest to complying with international law, said European Central Bank President Christine Lagarde, commenting on the EC’s proposed plan to provide Kyiv with a reparations loan. According to Lagarde, the mechanism does not strip Russia of its ownership of these assets.
Meanwhile, France and Italy have received confirmation that their participation in the new EU loan package in support of Ukraine will not affect their public debt levels. Eurostat explained that the financial guarantees backing the €210B loan secured by frozen Russian assets are classified as “contingent liabilities”.
Additionally, Belgium may face isolation in the EU, as happened to Hungary, if it continues to block the decision to provide Ukraine with a reparations loan. Belgium remains the plan’s main opponent due to its perceived risk of becoming responsible for the entire amount if Russia makes legal claims. EU leaders will meet in Brussels on December 18 to make the final decision on how to support Ukraine.