What's happened
EU negotiations on a reparations loan backed by frozen Russian assets are delayed due to Belgium's legal and financial concerns. Disagreements over guarantees and legal risks threaten to push back Ukraine's funding, with EU leaders set to discuss the issue in December.
What's behind the headline?
The EU's attempt to leverage Russian assets for Ukraine funding exposes deep divisions within the bloc. Belgium's insistence on legal guarantees and risk-sharing reflects broader concerns about liability and retaliation, which could stall the entire initiative. Slovakia's opposition, rooted in its history of opposing sanctions against Moscow, further complicates consensus. This delay risks leaving Ukraine underfunded as its financial needs escalate, especially with the IMF requiring assurances of Ukraine's viability. The EU's reliance on unanimity and legal safeguards reveals structural vulnerabilities in its crisis response mechanism. If delays persist, Ukraine's financial crisis will deepen, and the EU's unity on Russia and Ukraine policy will be tested. The upcoming December EU summit will be pivotal in resolving these disagreements, but the current deadlock suggests a protracted negotiation process that could undermine Ukraine's immediate financial stability and the EU's strategic cohesion.
What the papers say
Politico reports that Belgium's demands for guarantees and legal protections are central to the delays, with officials highlighting concerns over potential legal liabilities and retaliation from Russia. The article notes that Slovakia's Prime Minister Robert Fico has a history of opposing EU measures against Moscow, further complicating consensus. Reuters adds that the EU's proposal to use Russian assets held in Belgium as collateral faces legal and political hurdles, with Belgium insisting on guarantees to cover potential risks. Both sources emphasize that these disagreements threaten to delay Ukraine's funding, which is critical given Kyiv's escalating needs and the upcoming IMF decision, as highlighted by Balazs Koranyi. The articles collectively reveal a complex web of legal, political, and strategic issues that are delaying a crucial financial support mechanism for Ukraine.
How we got here
The EU plans to use frozen Russian assets, mainly held in Belgium, to finance Ukraine's war effort and budget needs. Negotiations have been complicated by Belgium's demands for guarantees against potential legal and financial risks, including retaliation from Russia. The scheme requires unanimity among EU member states and faces delays due to legal and political hurdles, especially from Belgium and Slovakia, which has historically opposed EU measures against Russia.
Go deeper
More on these topics
-
Belgium, officially the Kingdom of Belgium, is a country in Western Europe. It is bordered by the Netherlands to the north, Germany to the east, Luxembourg to the southeast, France to the southwest, and the North Sea to the northwest.
-
Ukraine is a country in Eastern Europe. It is the second-largest European country after Russia, which borders it to the east and northeast.
-
The European Commission is the executive branch of the European Union, responsible for proposing legislation, implementing decisions, upholding the EU treaties and managing the day-to-day business of the EU.
-
Valdis Dombrovskis (Latvian pronunciation: [ˈvaldis dɔmˈbrɔvskis]; born 5 August 1971) is a Latvian politician serving as European Commissioner for Economy and Productivity, and Commissioner for Implementation and Simplification. He previously served.
-
Robert Fico is a Slovak politician who served as Prime Minister of Slovakia from 2006 to 2010 and from 2012 to 2018. He has been the first leader of the Direction – Social Democracy party since 1999.
-
The European Union is a political and economic union of 27 member states that are located primarily in Europe. Its members have a combined area of 4,233,255.3 km² and an estimated total population of about 447 million.
-
Slovakia, officially the Slovak Republic, is a landlocked country in Central Europe. It is bordered by Poland to the north, Ukraine to the east, Hungary to the south, Austria to the southwest, and Czech Republic to the northwest.