In a significant step for Ukraine’s financial support, European Union (EU) leaders have decided to borrow €90 billion to fund the country’s defence against Russia. This decision comes after extensive negotiations on how to handle frozen Russian assets, which remain immobilised in various EU states.
Background on the Frozen Assets
Since Russia’s invasion of Ukraine, the EU has immobilised approximately €210 billion of Russian sovereign assets, with about €185 billion held in Belgium alone. The proposal to utilize these funds for Ukraine faced obstacles, particularly around assurances that Belgium would not bear undue financial risk if Russia retaliated legally.
The Borrowing Agreement
- The EU’s new financial strategy involves borrowing against its budget to secure funds for Ukraine.
- This agreement is aimed at ensuring Ukraine’s stability and ongoing military resistance against Russian aggression.
- Belgium, crucial in these negotiations, has sought guarantees before it agrees to any deal involving Russian assets.
Key Leaders’ Stances
During the discussions, Ukrainian President Volodymyr Zelenskyy emphasized the moral imperative to use frozen Russian assets for Ukrainian defence: “The decision to fully use Russian assets to defend against Russian aggression is one of the clearest and most justified decisions.” Meanwhile, Belgian Prime Minister Bart De Wever has expressed caution, highlighting the need for guarantees against potential financial repercussions.
Political Implications
The agreement underscores a shift in the EU’s approach as diplomatic tensions with Russia escalate. Several EU leaders, including foreign policy chief Kaja Kallas, have acknowledged the urgent need for maintaining unity and financial support to Ukraine.
Despite Hungary’s previous opposition, Prime Minister Viktor Orban’s agreement not to block the borrowing indicates a willingness to adapt within the EU framework, particularly after sustained pressure from other member states.
As the EU finalizes this financial strategy, it is evident that the stakes are high—not just for Ukraine but also for European stability and security in light of ongoing threats posed by Russia.