"The EU and Ukraine argue that money should be used to rebuild what Russia has destroyed: Brussels calls it a "reparations loan" and has come up with a plan to prop up Ukraine's economy to the tune of 90bn. "It's only fair that Russia's frozen assets should be used to rebuild what Russia has destroyed and that money then becomes ours," says Ukraine's Volodymyr Zelensky. German Chancellor Friedrich Merz says the assets will "enable Ukraine to protect itself effectively against future Russian attacks"."
"Belgium is worried it will be saddled with an enormous bill if it all goes wrong and Euroclear chief executive Valerie Urbain says using it could "destabilise the international financial system". Euroclear also has an estimated 16-17bn immobilised in Russia. Belgian Prime Minister Bart de Wever has set the EU a series of "rational, reasonable, and justified conditions" before he will accept the reparations plan, and he has refused to rule out legal action if it "poses significant risks" for his country."
Russia has launched legal action, with the Russian Central Bank suing Belgian bank Euroclear in Moscow and accusing the EU of theft over plans to use frozen assets. Ukraine faces a budget shortfall of 135.7bn over two years and Europe is eyeing roughly 185bn held at Euroclear from about 210bn of Russian assets frozen in the EU. The EU proposes a reparations loan and a plan to provide about 90bn to prop up Ukraine's economy. Zelensky and Germany's chancellor support using the funds for rebuilding and defence. Belgium and Euroclear warn of legal and systemic financial risks and Belgium's prime minister demands conditions and may pursue legal action.
Read at www.bbc.com
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