Malta is refusing to approve an EU plan to use frozen Russian assets to support Ukraine over fears that the plan could skyrocket Malta’s debt, this newspaper is informed.
A source familiar with the matter explained that should the plan go forward, Malta would end up paying some €170 million in financial guarantees.
A senior government official who spoke to MaltaToday on condition of anonymity explained that this would risk Malta’s debt spiraling out of control.
According to the source, member states would have to pay a sum proportional to their share of the EU’s GDP, as it was explained that this could reach some €170 million.
EU leaders are currently split on whether the bloc should use seized Russian assets, the majority of which are held by Belgium’s Euroclear bank, to aid Ukraine.
Malta, Belgium, Italy, Bulgaria, Hungary, and Slovakia are against the use of seized assets. Earlier this week, Malta was among the members states that asked the Commission and Council to continue examining different approaches that comply with EU and international law whilst addressing Ukraine’s financial requirements
Belgium’s hesitance stems from its fear that should the plan fail, it would be left with an astronomical hole in its finances should Russia try to recoup the seized assets. This led the member state to request sufficient guarantees to face this scenario.
The summit, where EU leaders are currently discussing the plan and its alternatives, is the bloc’s latest attempt to ensure that Ukraine has the resources to fight off Russia’s advances.