There are three options for financing Ukraine for the next two years: a loan with the blocked Russian assets, common debts, or the contribution of own resources by the member states. This was stated by European Commission President Ursula von der Leyen on Thursday in the European Parliament in Brussels.
EU Commission President Ursula von der Leyen delivers a speech in the European Parliament. Photo: Philippe Buissin/European Parliament/dpa
The European Commission wants to provide Ukraine with a recovery package of 140 billion euros using the cash from blocked Russian assets, which are largely held at Euroclear in Brussels. The Commission had hoped for a green light from the heads of state and government leaders to further develop that proposal, but the conclusions only called for exploring “options.” Belgium, in particular, is wary of using the money due to potential legal and financial consequences and demands that the risks be borne by all countries. A meeting on Friday between Belgium and the Commission did not lead to a breakthrough.
“We are working together with Belgium, and with all member states, to fulfill the promise” to financially support Ukraine over the next two years, Von der Leyen said on Thursday. The Commission is considering three options for this, she stated. Until now, Von der Leyen had only mentioned the loan option, although the other options had been circulating informally.
The first option is common debt or so-called ‘eurobonds’, the second option is an intergovernmental agreement where the member states provide the necessary resources themselves, and the third option is the recovery package. According to the Commission President, this remains the “most effective way” to support Ukraine and the best way to make it clear to Russia that time is not on its side.
“The time has come to bring a new impetus to expose (Russian President Vladimir) Putin’s cynical attempts to buy time and to get him to the negotiating table,” Von der Leyen added.
