Published On 3/12/2025
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Last update: 23:24 (Mecca time)
The European Commission presented to countries European UnionToday, Wednesday, there are two options to give Ukraine 90 billion euros (about 105 billion dollars):
- The first option is to use frozen Russian assets within Europe.
- The second option is based on borrowing from international markets.
The Commission said that its preferred option was what it described as a “compensation loan” based on Russian sovereign assets that have been frozen since the start of the war in Ukraine in 2022. However, Belgium – which hosts the Euroclear Foundation that owns the largest share of these assets – expressed concerns that the proposals did not provide sufficient guarantees, according to what Reuters reported.
The President of the European Commission confirmed Ursula von der Leyen Brussels aims to finance “two-thirds of Ukraine’s needs for the next two years,” adding: “We propose to cover two-thirds of Ukraine’s financing needs for the next two years, that is, 90 billion euros, while the rest will be borne by international partners.”
Von der Leyen added that increasing economic pressure on Moscow remains a fundamental pillar of European Union policy, and said: “Since pressure is the only language to which the Kremlin responds, we can also increase pressure… We must increase the costs of war because of Putin’s aggression, and today’s proposal gives us the means to do that.”
The Commission President said that the proposal took into account almost all the concerns raised by Belgium, whose Brussels-based financial institution, Euroclear, is the main owner of these assets.
Von der Leyen added that the proposal would now also include other financial institutions in the European Union that hold such assets.
Russian warning
On the other hand, Russia warned that the use of these assets “represents theft,” while the European Commission stresses that the plan does not amount to confiscation, because the financing will be in the form of a loan, and Ukraine will not be obligated to repay it unless Moscow pays compensation.
Reuters notes that the European plan is becoming more complex after the introduction of a joint US-Russian 28-point plan to end the war, which includes using part of the assets in a “joint investment vehicle.”
However, von der Leyen said that she explained the details of the “compensation loan” to US Treasury Secretary Scott Besent, stressing that it was “welcomed.”
The Commission said that the European Union could proceed with the plan if 15 out of 27 countries voted for it, provided that these countries represent 65% of the European Union’s population.
The other option – borrowing from the European Union budget – would require full consensus, which is unlikely given Hungary’s opposition to any additional funding for Ukraine.
Hours before the detailed proposals were revealed, Belgian Foreign Minister Maxime Prévot said that the proposals “do not meet Belgian requirements.”
Brussels particularly objects to the legal risks that may result from Russian claims against the plan, and demands comprehensive European guarantees to cover any potential legal costs, in addition to ensuring the provision of rapid financing to pay any amounts that may be required by European courts.
Earlier, the Financial Times revealed that Central Bank The European Union rejected a request from the European Commission to provide a financial support mechanism for a huge loan worth 140 billion euros (about 162 billion dollars) linked to frozen Russian assets.
The officials – who were quoted by the newspaper – confirmed that the European Central Bank’s analysis concluded that the Commission’s plan “violates the mandate” granted to it, because it is considered direct support for government obligations, which is economically classified as “monetary financing” prohibited under the European Union treaties, because it leads to… Inflation And loss of confidence in Monetary policy.