"Major European powers have voiced support for a proposal to use frozen Russian assets as collateral for an enormous loan to Ukraine to fund its reconstruction. The so-called Reparations Loan, first outlined by European Commission President Ursula von der Leyen in mid-September, would leverage Russian funds frozen in European banks to back a 140 billion euro ($164.4bn) loan for Ukraine guaranteed by European Union member states. Under the plan, Kyiv would not need to repay the loan until Russia covers the costs of war reparations."
"While some EU states have raised concerns over the legality and risk-sharing aspects of the scheme, support appeared to build on Wednesday at an EU summit in Denmark, Copenhagen. Finnish Prime Minister Petteri Orpo, Swedish Prime Minister Ulf Kristersson and Estonian Prime Minister Kristen Michal all endorsed using seized Russian funds to support Ukraine. Dutch Prime Minister Dick Schoof and French President Emmanuel Macron indicated they were open to such plans, provided legal and financial risks are addressed."
The Reparations Loan would leverage Russian funds frozen in European banks to back a €140 billion loan for Ukraine, guaranteed by EU member states. Kyiv would not need to repay the loan until Russia covers war reparations. Major European leaders from Finland, Sweden and Estonia endorsed using seized Russian funds, while the Netherlands and France signalled conditional openness pending legal and financial risk resolution. Some EU states raised concerns about legality and risk-sharing. The Kremlin denounced the proposal as illegal seizure and theft, warning of prosecution and of potential erosion of confidence in European financial commitments.
Read at www.aljazeera.com
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