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Why did the EU delay the €140B Ukraine loan?
The EU postponed the loan mainly because Belgium demands legal guarantees to protect against liability risks linked to the frozen Russian assets backing the loan. This legal concern has slowed down the approval process, as EU leaders work to address these issues.
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What are Belgium’s legal concerns about the loan?
Belgium is worried about potential legal challenges and liabilities associated with the frozen Russian assets, which are mainly held in Belgium. They want clear legal guarantees before agreeing to release the funds, fearing costly disputes or legal complications.
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How does this delay affect Ukraine’s plans for 2026-27?
The delay could impact Ukraine’s ability to secure necessary funds for military and reconstruction efforts in 2026-27. Without the loan, Ukraine might face challenges in financing its ongoing needs during a critical period of conflict and recovery.
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Will the EU approve the loan soon or is more negotiation needed?
EU leaders have tasked the European Commission with drafting new financing options for the next summit. While broad support exists, more negotiations are likely needed to resolve Belgium’s legal concerns before the loan can be approved.
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What role do geopolitical tensions play in this delay?
Geopolitical factors, including EU and US sanctions on Russia and internal EU debates about spending priorities, influence the decision. These tensions add complexity to the approval process, making negotiations more challenging.