Brussels [Belgium], December 20: German Chancellor Friedrich Merz intends to comply with Belgium's demands and make Russian central bank assets held in Germany available to support Ukraine, diplomatic sources told DPA.
European Union leaders are gathered in Brussels aiming to find a solution to cover Ukraine's economic and military needs for the coming years.
The European Commission has proposed providing Ukraine with up to 210 billioneuros ($246 billion) in immobilized Russian assets in the EU as a reparations loan, of which 90 billion euros is meant cover financial and military needs in 2026 and 2027.
Germany had long argued in Brussels that first the roughly 185 billion euros in Russian central bank funds managed by the Belgian company Euroclear should be used for loan.
One reason for Berlin's hesitation given was that only a small three-figure million-euro sum was held in Germany. The exact amount is however kept secret by the German government. The Belgian government has been demanding that all EU countries holding frozen Russian assets have to participate in the funding scheme to mitigate the risk of Belgium becoming the sole target of potential retaliatory measures.
Brussels fears in particular that Moscow could retaliate against private European individuals and companies, for example through expropriations in Russia, and has been calling for safeguards.
Next to Belgium, Russian assets are held in Germany, France, Sweden, Cyprus and Luxembourg, although the majority of the usable funds are tied up in France, according to the commission.
Ukrainian President Volodymyr Zelensky urged European Union leaders to swiftly agree on new funding for Kiev after attending an crunch-time summit in Brussels as a guest.
Without new funding, Ukraine was at risk of running a deficit of 45 billion-50 billion euros ($52.8 billion-$58.7 billion) next year and of having to scale back its military production, he told journalists in Brussels on Thursday.
European Union leaders gathered in Brussels are discussing whether to make Russian assets frozen under EU sanctions available to Ukraine as a loan.
The European Commission has proposed to provide Ukraine with up to 210 billion euros in immobilized Russian assets in the EU as a reparations loan, of which 90 billion euros is meant cover financial and military needs in 2026 and 2027. Belgium, where the lion's share of the assets is held, opposes the plan, citing legal and financial risks.
Zelensky met Belgian Prime Minister Bart De Wever for a private discussion on the sidelines of the summit.
"I understand the risks he's talking about," Zelensky said after the exchange, "but we are at war, and I think that we face bigger risks." The Ukrainian president said it was a "positive signal" that De Wever was now signalling that a solution for the issue needs to be found in the coming days.
Zelensky also said that an agreement on the reparations loan was needed to avoid the assets being used against Ukraine in the ongoing diplomatic efforts to end Russia's war.
Having its financial needs covered for the coming year would strengthen Ukraine's position at the negotiating table, he said.
Source: Qatar Tribune
