Belgium and EU Commission to negotiate on using frozen Russian assets — Politico
Photo: Belgium and the EC will hold a special meeting on the use of Russian assets (wikimedia.org/User_Boston9)
Representatives of the European Commission and the Belgian government will hold a working meeting on Friday, November 7, to try to find a joint solution on the use of frozen Russian assets, Politico reports.
The new meeting on Friday will take place after the deputy Finance Ministers failed to make progress in discussions on the so-called reparation loan on Tuesday. The European Commission has already warned that time is running out.
"The longer we now run delays, the more challenging it will become. It may open questions on some possible bridging solutions," says European Commissioner for Economic Affairs Valdis Dombrovskis.
According to Politico, if the funds do not arrive by spring, Ukraine risks facing a serious budget deficit next year. The European Commission warns that without an agreement on the use of Russian assets, EU countries will have to finance support for Kyiv on their own, and after the pandemic, which has undermined state budgets, most governments are reluctant to do so.
"How are we going to get €140 billion out of European budgets at this time of year?" says the Deputy Finance Minister of one country indignantly, commenting on Belgium's position.
The European Commission plans to present Belgium with a memorandum on possible alternatives for financing Ukraine, which involve raising funds through loans at the EU level. Everyone hopes that the Belgian government, given its own financial constraints, will agree to a compromise when it realizes that there are virtually no other realistic options.
Reparation loan for Ukraine
Earlier, the European Commission proposed to provide Ukraine with a loan from frozen Russian assets. Most of the frozen assets of Russia are held in the Belgian depository Euroclear.
Belgium is currently refusing to support the idea of a reparations loan for Ukraine.
Brussels wants guarantees from other EU countries that they will quickly provide the necessary funds if assets are returned to Russian control.
In addition, Belgium demands that in the event of legal action by Russia, the costs of legal defense be shared among EU countries and that the European Commission provide a solid legal basis for the initiative.
