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Why is the EU divided over the Russian asset reparations loan?
The EU is split because some countries, like Belgium, fear legal liabilities and potential retaliation from Russia. Belgium opposes the plan, citing risks of lawsuits and financial instability, while others see it as a necessary move to support Ukraine and weaken Russia's influence. The disagreement reflects broader concerns about legal safety and political unity within the bloc.
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What are the legal and financial risks involved for Belgium and other EU countries?
Belgium and other EU nations worry that using Russian assets as collateral could lead to legal challenges, including lawsuits from Russia or other parties. There are also fears that unfreezing or seizing assets without proper safeguards might damage their financial reputation and create instability in markets, especially if Russia retaliates or blocks the process.
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How does this dispute impact Ukraine's 2026-27 budget?
The deadlock threatens to delay or complicate Ukraine's funding for 2026-27, which relies on the proposed loan. Without a consensus, Ukraine may face funding shortfalls, affecting its defense and recovery efforts. The EU's ability to provide strategic support hinges on resolving these legal and political disagreements.
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What are Russia's threats and reactions to the EU plan?
Russia condemns the plan as theft of its sovereign assets and has warned of retaliation. Moscow's officials have stated that any operation involving Russian assets without their consent could lead to lawsuits and damage the EU's reputation. Russia's stance adds pressure on the EU to proceed carefully or face consequences.
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Could this dispute cause a wider split within the EU?
Yes, the disagreement over the Russian asset loan highlights underlying divisions within the EU. Countries like Hungary have also expressed opposition, and the risk of vetoes or legal challenges could weaken the bloc's unity on foreign policy and financial matters related to Russia and Ukraine.
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What are the possible solutions to break the deadlock?
Potential solutions include establishing clear legal safeguards, sharing risks among EU members, or finding alternative funding sources for Ukraine. Diplomatic negotiations and guarantees might also help reassure hesitant countries like Belgium, allowing the EU to move forward with its strategic goals.