The EU Commission proposes a 90 billion euro loan to Ukraine funded by frozen Russian assets, but Belgium opposes the plan fearing Russian compensation claims. Sweden welcomes the proposal and hopes for guarantees to reassure Belgium. A decision is expected at the EU summit on December 18.
Ukraine faces an urgent need for financial support amid the war. On Wednesday, the EU Commission presented two options for a loan of at least 985 billion Swedish kronor, equivalent to 90 billion euros. The main proposal uses frozen Russian state assets as collateral, divided into 45 billion euros in 2026 and the same in 2027. These assets have been converted to cash from matured securities, with Russia formally retaining its claim, though the goal is for the funds to serve as war reparations.
Commission President Ursula von der Leyen emphasized the support's importance at a Brussels press conference: "Ukraine stands at a decisive crossroads. We can equip them with the means to defend themselves and conduct peace negotiations from a position of strength."
The alternative uses the EU budget as collateral, requiring unanimity among member states, unlike the qualified majority needed for Russian assets. Sweden backs the main track. Foreign Minister Maria Malmer Stenergard (M) said after a NATO meeting in Brussels: "We welcome the proposal. Sweden's line has been and remains that the most just and reasonable is to use the frozen Russian assets."
Belgium, where most assets are held, strongly opposes due to fears of Russian claims. A high-ranking Belgian source told Reuters: "The EU Commission has not listened enough to Belgium's concerns. Belgium cannot accept being forced to shoulder the risks alone in such an operation." Malmer Stenergard hopes for guarantees: "I hope we can give Belgium the guarantees they need." She warned that politically ignoring Belgium would be impossible, despite legal feasibility. Additional measures are proposed, such as bans on restoring frozen funds and extensions of sanctions. Russia's President Vladimir Putin called the plan "theft" last week.
The EU hopes for a decision at the summit on December 18.