EU close to deal on Russian assets, Dec 18 summit to go on until agreement
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European Council president Antonio Costa said at a press briefing in Dublin, Ireland, that he would keep EU leaders talking for days, if necessary, until they reach an agreement.
PHOTO: AFP
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- EU aims to finalise a plan by December 18 to fund Ukraine through 2027, potentially using €210 billion in frozen Russian assets.
- Belgium seeks guarantees from EU nations to share financial risks if Russia sues over utilising its assets, with ongoing discussions.
- The EU, backed by UK support, views financial aid to Ukraine as crucial for its security, deterring potential Russian aggression.
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DUBLIN - The European Union is very close to a solution to finance Ukraine in 2026 and 2027 that would have the support of at least a qualified majority of EU countries, the chairman of EU summits, Antonio Costa, said on Dec 9.
EU leaders pledged on Oct 23 to bankroll Kyiv for the next two years
The leaders are to decide at a summit on Dec 18 in Brussels how to deliver on their pledge and Mr Costa told reporters in Dublin he would keep them talking for days, if necessary, until they reach an agreement.
Since most EU governments struggle with large public debts, the preferred way for them to finance Ukraine’s defence is to put to work some €210 billion (S$316 billion) of Russian sovereign assets immobilised in Europe after Moscow invaded Ukraine in 2022.
Despite the political momentum, the project is not simple because Belgium, where most of the frozen assets are held, wants guarantees from other EU countries
Discussions to give Belgium the guarantees are under way and will come to a head at the summit - the European Council.
“Now we are working on fine-tuning the legal and technical solution that could obtain the agreement of at least a qualified majority of member states. I think we are very close to obtaining a solution,” Mr Costa said.
“For me, it’s sure that on the 18th of December we will take a decision. But as I shared with my colleagues, if it’s necessary, we will continue on the 19th or the 20th of December - until we reach a positive conclusion,” Mr Costa said.
G-7 solidarity
Keeping Ukraine financed and fighting is key for the EU because the bloc sees Russia’s invasion of Ukraine as a threat to its own security. Most EU countries believe that as long as Moscow is militarily engaged in Ukraine it will not attack any EU countries, giving Europe time to prepare its defence.
The Commission wants to issue a reparations loan to Ukraine of up to €165 billion, by asking all institutions in EU countries holding Russian cash to exchange it for EU triple-A bonds issued by the Commission.
The cash would then go to Ukraine in installments over the next two years.
To spread the risk of Russian retaliation, Belgium wants other G-7 countries holding Russian sovereign assets, such as Britain, Canada and Japan, to replicate the EU scheme.
British Prime Minister Keir Starmer said on Nov 25 that London was ready to move with the EU
The Guardian newspaper reported on Dec 8 that London was prepared to hand over £8 billion (S$13 billion) of assets frozen in Britain to support Ukraine.
Canada said in October it would explore such an option while Japan has not yet decided specifically how to extend financial support to Ukraine, though it has not ruled out the possibility of using frozen Russian assets in its jurisdiction. REUTERS
