EU Commission to unveil legal plan on frozen Russian assets today - Reuters

According to several agency sources, the European Commission plans to present a legal proposal this week on the use of frozen Russian assets to finance Ukraine, while keeping open the possibility of borrowing on financial markets or combining these two options.

It is known that EU leaders agreed in October to meet Ukraine's "pressing financial needs" over the next two years, but did not approve a plan to use 140 billion euros of frozen Russian assets in Europe as a loan for Kyiv due to concerns raised by Belgium.

Most of the Russian assets frozen in Europe are held in accounts at the Belgian securities depository Euroclear, and the Belgian government has repeatedly expressed concern about the associated legal risks.

According to the Commission's plan, Ukraine would have to repay the loan only if Russia pays reparations for the damage caused by the war.

The executive body of the European Union is expected to adopt the proposal today, and it will include a reparations-backed loan plan.

According to the sources, the legal text will leave the door open for a loan financed through EU borrowing on financial markets, as well as for a transition between these two options.

Frozen Russian assets for Ukraine

In recent days, Belgian Prime Minister Bart De Wever stated that the EU's plan to use frozen Russian assets to finance Ukraine could have serious economic and geopolitical consequences.

Meanwhile, Politico recently published a report saying that Belgium's resistance may have more down-to-earth reasons than fear of retaliation from Russia. EU officials suspect that Belgium is appropriating the income generated by Russia's frozen assets.

At the same time, French Foreign Minister Jean-Noël Barrot said the European Council could decide on the frozen Russian assets as early as December 18.

The United States supported returning Russian assets frozen in EU countries to Moscow after a peace agreement is reached between Ukraine and Russia.