"The idea of EU borrowing initially seemed unworkable as it requires unanimity and Hungary's Russia-friendly Prime Minister Viktor Orban had opposed it. But Hungary, Slovakia and the Czech Republic agreed to let the scheme go ahead as long as it did not impact them financially. The EU leaders said Russian assets, totalling 210 billion euros in the EU, will remain frozen until Moscow pays war reparations to Ukraine."
""This is good news for Ukraine and bad news for Russia and this was our intention," German Chancellor Friedrich Merz said. The stakes for finding money for Kyiv were high because without the EU's financial help, Ukraine would run out of money in the second quarter of next year and most likely lose the war to Russia, which the EU fears would bring closer the threat of Russian aggression against the bloc."
EU leaders approved a €90 billion loan to Ukraine backed by the European Union budget to address urgent financing needs. The European Commission received a mandate to continue work on a reparations loan based on frozen Russian assets, but that option proved unworkable for now due to Belgian resistance where most assets are held. Hungary initially opposed EU borrowing, but Hungary, Slovakia and the Czech Republic later agreed provided no financial impact on them. Russian assets totaling €210 billion will remain frozen until Moscow pays war reparations, which Ukraine could use to repay the loan. Without EU help, Ukraine risks running out of funds in the second quarter and likely losing the war.
Read at Irish Independent
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