EU Leaders Ready Unprecedented Aid for Ukraine During Financial Turmoil

European Union leaders are poised to take significant steps to support Ukraine, which is currently grappling with a severe financial crisis due to ongoing conflict with Russia. At a crucial summit in Brussels, the European Commission proposed using part of the €210 billion in frozen Russian Central Bank assets in Europe to secure a €90 billion “reparations loan” for Ukraine. Canada, the UK, and Norway are expected to help cover the remainder of the loan. However, this plan has sparked controversy; the European Central Bank has warned it could undermine trust in the euro, and Belgium has raised concerns over potential legal repercussions due to Russia’s lawsuit against Euroclear, the clearing house holding the assets.

An alternative “Plan B” involves raising funds on international markets but requires unanimous consent, which may be hindered by Hungary’s opposition. In contrast, Plan A requires only a qualified majority, allowing it to advance despite Hungary’s stance. Countries like Slovakia, Italy, and Malta remain undecided, complicating EU unity.

Additionally, Europe has launched an International Claims Commission to address damages from Russia’s invasion, marking a significant step toward accountability. This commission will evaluate over 86,000 claims related to various violations, with funding options including frozen Russian assets. Italian Prime Minister Giorgia Meloni has expressed concerns about the legal challenges related to using these assets.

Furthermore, European leaders have advocated for security guarantees for Ukraine, proposing a European-led peacekeeping force to maintain military stability. These developments highlight the EU’s commitment to assisting Ukraine, holding Russia accountable, and ensuring security through international collaboration.