Finland reveals when EU will approve Ukraine funding plan
Photo: Elina Valtonen, Minister for Foreign Affairs of Finland (Getty Images)
The European Union may finalize its plan for financing Ukraine in the future as early as December, according to Finnish Foreign Minister Elina Valtonen.
The European Union may finalize its plan for financing Ukraine in the future as early as December, according to Finnish Foreign Minister Elina Valtonen.
Valtonen made this prediction after a video conference with EU Foreign Ministers.
The Finnish Foreign Minister did not disclose any further details.
Reparation loan for Ukraine
Initially, the European Commission proposed to provide Ukraine with a so-called reparation loan from frozen Russian assets.
For such an initiative to take effect, it must be supported by all 27 EU member states.
So far, Belgium, where most of Russia's frozen assets are held, is opposed.
Brussels fears that the country will be forced to return the funds to Russia if the Kremlin's lawyers challenge the idea of using frozen Russian assets to help Ukraine. European Commission officials are trying to convince Belgium to agree to the reparation loan, but so far the situation remains unchanged.
Today, November 26, it became known that the European Commission is working on alternative options for financing Ukraine in case the reparation loan cannot be agreed upon.
The EC is considering a transitional loan, which will be financed by EU borrowings.
At the same time, in the case of long-term assistance, the only option remains a reparation loan.
Ukraine desperately needs financial assistance from its Western allies, as the Ukrainian budget deficit is estimated at approximately $60 billion.
