The European Commission has been working since last month to develop a complex package that would allow the EU to finance a “reparations loan” for Ukraine, drawing on more than 200 billion euros of assets from the Russian central bank, immobilized since the invasion of Ukraine in February 2022 following Western sanctions.
The idea is that the EU uses part of these assets to then finance a loan of 140 billion euros in favor of Ukraine, which the latter will only repay if Russia pays it war reparations.
If Moscow refuses, EU sanctions remain in force and the assets remain immobilized.
On the other hand, if the sanctions are lifted without Russia having paid reparations, it will then be up to the EU to reimburse Euroclear, the financial institution where these 210 billion in Russian assets are located, and which has its headquarters in Brussels.
This project, in the development phase, must be discussed by EU leaders at a summit on Thursday in Brussels. Several European officials hope that on this occasion they will give the green light to the European Commission to work on its legal implementation.
Belgium, where Euroclear is located, has so far been very reluctant, fearing having to foot the bill alone in the event of a problem.
The Belgian government is particularly insisting that a credible solidarity mechanism be established, giving it the assurance that other EU countries, or the Union budget, will guarantee possible reimbursement, if necessary.
