President Volodymyr Zelensky stated that Ukraine intends to seek alternative funding avenues in the event of difficulties obtaining the reparations loan. According to him, these options may be more complex, but they are currently being actively discussed with representatives of the European Union.
This is reported by Kyiv24
Details of Discussions with the EU
Zelensky emphasized that issues with the reparations loan will not prevent Ukraine from securing the necessary support, as negotiations are ongoing with EU leaders, including Ursula von der Leyen and António Costa. They are exploring alternatives regarding the amounts and mechanisms for providing tranches. The president highlighted that the reparations loan or any other format for utilizing frozen Russian assets significantly impacts the situation in Ukraine.
“If there are questions regarding the reparations loan, we are counting on alternative paths. They are probably more complicated. But we are discussing with the European Union, with the leaders, primarily with von der Leyen and Costa as the heads of the European Union, that they will seek alternatives regarding the sizes of these tranches,” he said in response to a question from Radio Liberty.
Ukraine’s Plans and Europe’s Position
Zelensky explained that the reparations loan is a financial guarantee of security for the country. In the event of continued war, Ukraine hopes for funding both from bilateral packages with countries and at least 40-45 billion euros from tranches of the reparations loan to support the army and defense sector, as well as to address financial needs. If the war ends, these funds will be directed towards reconstruction and strengthening Ukraine’s macro-financial stability.
The EU’s High Representative, Kaja Kallas, recently described this week as “very important” for resolving the funding issue for Ukraine. According to her, several options are currently being considered, but the reparations loan is regarded as the most reliable. She emphasized that negotiations are ongoing, and a final decision has not yet been made.
In Europe, the idea of providing Kyiv with a so-called “reparations credit” amounting to 140 billion euros backed by frozen Russian assets is actively debated. However, Belgium, where the majority of these funds are located, opposes such a decision due to concerns about legal claims from Russia.
Valérie Urban, head of the Euroclear clearing house, expressed the opinion that the European Commission’s proposal for the forced seizure of frozen Russian assets to assist Ukraine is unrealistic. She stressed that the organization is prepared to defend its interests in court to avoid bankruptcy in the event of corresponding actions by Moscow.
On December 11, Belgian Deputy Prime Minister Vincent Van Peteghem stated that frozen Russian assets would have to be used for Ukraine in the future, but Belgium will not agree to any rash compromises before a final agreement is reached.
At the same time, the European Central Bank is not ready to insure such a loan. Russia, on the other hand, categorically rejects the idea of confiscating its funds and calls the potential use of frozen assets for the benefit of Ukraine theft.