Czechia’s Babiš rejects €210 billion Ukraine reparation loan

Czechia is joining the group of countries opposed to leveraging frozen Russian assets to loan €210 billion to Ukraine.

“We also agreed with the Belgian prime minister, the European Commission must find other ways to finance Ukraine,” the country’s incoming prime minister, Andrej Babiš, announced Saturday via Facebook. “Our coffers are empty, and we need every crown we have for our citizens,” he added, referring to the Czech currency.   

On Friday, the EU voted to indefinitely freeze Russia’s financial assets in Europe, most of which are held by Belgian clearing house Euroclear – with 2 votes against. 

“We will not provide any guarantees and will not invest any money,” Babiš, who takes office on Monday, said in a video address. 

The push from Prague adds to a growing number of voices joining Belgium in opposing using the reserves for a so-called reparations loan to Ukraine. The issue is expected to dominate the agenda at the European Council later this week.

Czechia and other countries could reject the plan at this leaders’ summit, though final approval would require only a qualified majority. Regardless what happens at the Council, it would be politically difficult for European Commission President Ursula von der Leyen to push the controversial loan plan through without substantial support from across the union.

On Thursday, European leaders will meet in Brussels at their regular summit to chart a path forward for the troubled scheme, with Ukraine expected to start running out of money early next year.

On Friday, Italy, Bulgaria, Hungary, and Malta also said they supported Belgium‘s stance on the loan. 

(*This article has been updated to provide further context)

(mk)