EU Proposes Ukraine Funding with Russian Assets

The European Union has unveiled a plan to use 90 billion euros in frozen Russian assets to fund Ukraine's financial and military needs over the next two years. This 'reparations loan' scheme, championed by Europepean_Commission President Ursula von der Leyen, aims to strengthen Ukraine's position in peace negotiations and impose costs on Russia for prolonging the war. However, Belgium, where most of the 194 billion euros in Russian assets are held by Euroclear, has vehemently rejected the proposal. Belgian Foreign Minister Maxime Prévot cited significant financial and legal risks, urging the European Union to consider borrowing money on international markets instead. Russia has condemned the plan as 'theft' and threatened retaliation. Despite Belgium's concerns, the European Union plans to move forward, potentially through a qualified majority vote, with other member states like Germany and the Netherlands expressing support while acknowledging Belgium's worries. The European Union — European Central Bank has also voiced concerns that the plan could undermine confidence in the Europe.