The European Union must explore all “possible forms” to better use frozen Russian assets in Europe, to strengthen its support for Ukraine, his head of Kaja Kallas diplomacy said on Saturday.
Russian state assets abroad froze after the invasion of Ukraine in February 2022. Most of the 210 billion euros, is in Belgium, an EU member country. The twenty -seven for the first time decided to use the interests generated by these assets, several billion euros per year, to finance the war effort of Ukraine.
War damage
After months of discussion, G7 leaders concluded an agreement in October 2024 to use the interests generated by these assets to guarantee a loan in favor of Ukraine, for an amount of 45 billion euros with respect to the European Union. But several EU countries now believe that you have to go further, and some are favorable to the use of capital and not just interest.
Others, on the other hand, such as France, Germany or the Netherlands, are much more cautious and stress that a seizure of these assets presents legal obstacles and runs the risk of destabilizing the euro by diverting future foreign investors. The commitment solutions are on the table of the twenty -seven, whose idea, proposal, among other things per Lithuania, consider the seizure as a loan to Ukraine to finance the war damage, which Russia will have to pay for the conflict.
“Everyone agrees at one point, namely that, in view of the ravages that Russia causes and has so far caused in Ukraine, it is unthinkable that one day he can recover this money, unless he does not reach Ukraine,” Kaja Kallas said in front of the press. Another idea would be to move towards more risky investments to generate more profits.
Rejection of Belgium
But Belgium, particularly concerned about the financial risks raised, was on Saturday hostile to any change. “Changing the investment strategy is not an option either, since this could increase the level of risk, both legal and financial and judicial,” said Belgian Foreign Minister Maxime Prévot, Copenhagen, after reiterating his categorical opposition to any asset seizure.
“So we work to mitigate these risks,” Kaja Kallas said.
Source: BFM TV
