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The European Union is set to vote on Thursday on a historic proposal to use billions of dollars of frozen Russian assets to fund Ukraine.
It comes at a critical juncture in peace talks, after President Vladimir Putin called European leaders “little pigs” on Wednesday and US President Donald Trump accused the continent of showing weakness.
Europe one has swum Unprecedented plan to raise £80bn of total £250bn in frozen Russian assets For ukraine Supporting its war efforts and in turn putting pressure on Putin to end the war.
European Union Talks have been going on for several months about Legal and financial implications of seizing assetsBut Caution continues to prevent delivery at critical times.
belgiumHe who has most of the wealth fears may have to pay everything back On its own if Russia successfully challenges the plan. Its support will depend on responsibility sharing by the EU.
Russia has already vowed a “harsh response” against any “illegal actions” by the EU around its frozen assets and called the plan “theft”.
How will the plan work?
As it stands, European Commission Is looking for £80bn ($105bn) for Ukraine through frozen assets or international borrowing.
The money – made up of private assets such as yachts and real estate as well as sovereign assets including cash, bonds and securities – will support military costs and help cover basic services crippled by nearly four years of conflict.
Ursula von der LeyenThe Commission Chairman estimated that the loan would cover two-thirds of Ukraine’s financing needs for the next two years. The remaining portion can be covered by other partners, he said.
Britain also has around £25 billion of frozen Russian assets and wants to coordinate with EU states to exploit the assets. Some €290 billion (£250 billion) were frozen in the West following a full-scale invasion of Russia.
On Wednesday Prime Minister Keir Starmer warned Russian oligarch Roman Abramovich that “time is running out” for him to hand over £2.5 billion from the sale of Chelsea Football Club. He told parliament that a license was issued to transfer money to the people of Ukraine.
Can Belgium cancel this deal?
Leaders had aimed to agree a compensation loan for Ukraine by October – but hopes were dashed due to Belgian opposition.
Belgium has most of the assets that Europe wants to exploit. Euroclear, a central securities depository in Brussels, holds about £160 billion. The main issue is that its government is worried that a successful legal challenge could lead to the country having to pay the entire amount itself.
“This would mean bankruptcy for Belgium,” Foreign Minister Maxime Prévot has explained.
As such, Belgium would like guarantees from its EU partners that they will share responsibility in the event of any challenge against the state or Euroclear. Otherwise, he suggests that the EU borrow the necessary amounts from the markets.
But Italy, Malta and Bulgaria have also expressed concern over the plan and have asked the EU to consider options to support Ukraine.
On Wednesday Italian Prime Minister Giorgia Meloni said using Russian assets without a solid legal basis would give Moscow “the first victory since the beginning of the war.”
Europe can share the responsibility
Germany’s Friedrich Merz came out in favor of equally dividing the responsibility for carrying the plan forward. He said Belgium cannot rely solely on political promises and deserves legally binding assurances.
De Wever said he hoped to have a productive discussion with Mr Merz on Friday, but would not pressure him to support any plan.
Polish Prime Minister Donald Tusk urged European leaders to take a quick decision on the matter. The country is one of several, including Lithuania, Estonia and Denmark, that have accused Russia of “hybrid warfare” following drone incursions into their airspace.
Tusk said, “Now we have a simple choice – either money today or blood tomorrow. And I’m not just talking about Ukraine, I’m talking about Europe.” “All European leaders must ultimately rise to this occasion.”
Russian Foreign Ministry spokeswoman Maria Zakharova previously told reporters: “Any illegal actions involving our assets will not go unanswered… Preparations for a package of countermeasures in the event of actual theft and seizure of assets of the Russian Federation are already underway.”