Copenhagen [Denmark], October 2: European Union officials on Wednesday urged capitals to back a push to lend Kiev billions of euros in reparation loans backed by Russian assets frozen in the bloc.
European Commission President Ursula von der Leyen and German Chancellor Friedrich Merz have proposed using frozen Russian central bank funds to provide Ukraine with additional loans of up to 140 billion euros ($164.3 billion).
"We are not confiscating the assets," von der Leyen stressed, when she arrived at an EU summit in Copenhagen where the initiative is to be discussed.
"Ukraine has to pay back this loan if Russia pays reparations," she said.
According to the European Commission, around 200 billion euros in assets of the Russian Central Bank has been frozen in the EU due to the Russian invasion of Ukraine. Much of it is held by the Brussels-based securities depository Euroclear.
"There's a growing consensus among us that it's not only the European taxpayers that should pay for the support to Ukraine, but that Russia has to be held accountable," von der Leyen said.
"The basic principle of international law is that you have to cover the damages you have caused," said EU top diplomat Kaja Kallas, addressing legal concerns raised by some members of the 27-strong bloc. Others expressed fears over the implications for Europe as a financial market.
"If you don't start the war against another country, then you are out of the risk," said Kallas.
"I think the majority of the countries, majority of the people, majority of the companies in the world will not start wars against other countries." Ukraine received additional 4 billion eurosin financial aid Von der Leyen also announced the disbursement of 4 billioneuros ($4.7 billion) in loans as financial aid for Ukraine, of which ?2 billion are to be invested in drones.
"If we all agree that Ukraine is our first line of defence, we have to step up the military support for Ukraine," she said.
The financial support is part of a separate loan initiative by the G7 group of major democratic industrialized nations, which provides for new aid payments totalling around 45 billion euros by 2027.
The EU is providing 18.1 billion euros of this amount. With the new disbursement, 14 billion euros has been paid since the beginning of the year.
The proceeds from Russian state assets frozen in the EU are to be used to repay the loans. Moscow has reacted with anger over the disbursement and has accused the EU of theft.
"This is about plans to illegally confiscate Russian property, simply put, theft," Kremlin spokesman Dmitry Peskov told Russian news agencies, commenting on the commission's announcement.
The move will lead to the destruction of trust in Europe. It is clear that the principle of the inviolability of property is thereby being overturned, Peskov said.
Source: Qatar Tribune
