#ukraine-funding

#ukraine-funding

More than two months ago, the European Commission floated a plan to provide a loan to Kyiv secured against some of the 210bn of Russian central bank assets frozen in Europe, most of which are held at the Euroclear clearing house in Belgium. The idea was for the EU to borrow from Euroclear in order to lend to Ukraine. Russia would remain the legal owner of the assets, and Kyiv would repay the loan using Russian reparations after the war,

Ukraine's president Volodymyr Zelenskyy said in an interview with Bloomberg, published this morning ($), that the country's survival relied on getting more funds from allies. I hope, God bless, we will get this decision, he told Bloomberg Television. If not, We will have to find an alternative, it's a question of our surviving. That's why we need it very much. And I count on partners.

But it is a funding remedy that comes with a hatful of serious snags provoking caution in many of the 27 member states, including Ireland. However, the US's ambivalent and rapidly changing approach to the conflict, including cutting funding for Ukraine, has galvanised attitudes in many capitals. Last month, EU Commission president Ursula von der Leyen floated an outline approach to fund a "solidarity loan" for Ukraine.

News that a highly anticipated meeting between US President Donald Trump and Russian President Vladimir Putin has been put on hold will offer some relief to Ukraine's EU allies, who were left rattled by the prospect of the bloc's most Russia-friendly member playing host to talks on the future of Europe's security. Key summits in Brussels and London later this week could now test Europe's capacity to deliver as it tries to unlock fresh financial support for Kyiv,