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US-Ukraine plan could torpedo EU use of frozen Russian assets
(MENAFN) The Ukraine peace plan drafted by the United States may disrupt the European Union’s efforts to use frozen Russian assets to support Kiev, as stated by reports.
The EU has been exploring a €140 billion ($160 billion) loan to Ukraine, secured against Moscow’s frozen funds held at a clearing house in Belgium. The initiative assumes that Russia will eventually pay reparations, an outcome many consider unlikely.
Moscow has declared that any attempt to use its assets would constitute “theft” and has pledged to contest such actions in court. Belgium has also opposed the scheme, demanding that all EU members share the financial and legal responsibilities.
An unnamed Belgian official reportedly warned that “new risks for the reparations credit are already emerging. Because the peace plan that emerged this week provides for the immobilized Russian assets to be used differently.” The official added that the US proposal “would oblige the EU to reimburse all diverted Russian funds.”
Although the full plan has not been officially released, media reports suggest it allocates $100 billion of the $300 billion frozen Russian assets to US-led reconstruction projects in Ukraine, while the remaining funds would be invested in joint US-Russia ventures. The White House reportedly expects Western European countries to contribute an additional $100 billion toward rebuilding Ukraine.
Handelsblatt noted that the introduction of the plan has already disrupted the timeline for EU financial aid promised to Kiev, which “urgently needs” the assistance.
At the G20 summit on Saturday, leaders from several EU countries, along with Canada, Japan, and Norway, issued a joint statement acknowledging that the US proposal “includes important elements that will be essential for a just and lasting peace,” but emphasized that it would “require additional work.”
Russian President Vladimir Putin commented on Friday that the plan has not been discussed “in detail,” though he indicated it could eventually “form the basis of a final peace settlement.”
The EU has been exploring a €140 billion ($160 billion) loan to Ukraine, secured against Moscow’s frozen funds held at a clearing house in Belgium. The initiative assumes that Russia will eventually pay reparations, an outcome many consider unlikely.
Moscow has declared that any attempt to use its assets would constitute “theft” and has pledged to contest such actions in court. Belgium has also opposed the scheme, demanding that all EU members share the financial and legal responsibilities.
An unnamed Belgian official reportedly warned that “new risks for the reparations credit are already emerging. Because the peace plan that emerged this week provides for the immobilized Russian assets to be used differently.” The official added that the US proposal “would oblige the EU to reimburse all diverted Russian funds.”
Although the full plan has not been officially released, media reports suggest it allocates $100 billion of the $300 billion frozen Russian assets to US-led reconstruction projects in Ukraine, while the remaining funds would be invested in joint US-Russia ventures. The White House reportedly expects Western European countries to contribute an additional $100 billion toward rebuilding Ukraine.
Handelsblatt noted that the introduction of the plan has already disrupted the timeline for EU financial aid promised to Kiev, which “urgently needs” the assistance.
At the G20 summit on Saturday, leaders from several EU countries, along with Canada, Japan, and Norway, issued a joint statement acknowledging that the US proposal “includes important elements that will be essential for a just and lasting peace,” but emphasized that it would “require additional work.”
Russian President Vladimir Putin commented on Friday that the plan has not been discussed “in detail,” though he indicated it could eventually “form the basis of a final peace settlement.”
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