EU support for Ukraine on brink of collapsing as leaders ‘cave in’ | World | News
The EU’s top diplomat has warned that it looks “increasingly difficult” to achieve agreement among European leaders on a vital loan for Ukraine. Kiev is quickly running out of money and urgently needs cash to keep the country afloat and equip its army with weapons.
Leaders of European states are discussing a plan to grant Kiev a compensation loan totaling €210 billion, financed from frozen Russian assets. The bulk of this money (€185 billion) is held in Belgium, at Euroclear, a central securities depository in Brussels. The plan met fierce resistance from Belgian prime minister Bart De Wever, who demanded guarantees from Brussels of protection against any Russian retaliation.
EU leaders will attend a tough European Council summit on Thursday to discuss the compensation loan.
However, the possibility of reaching an agreement that would leave Ukraine’s fate uncertain is decreasing.
“This [reparations loan] “This is what we are working on,” said the EU’s Foreign Affairs Chief, Kaja Kallas. “We’re not there yet and it’s getting harder, but we’re working and we still have a few days left.”
He added that the compensation loan is the “most reliable option” for Ukraine’s financing over the next year.
However, in recent days, Italy, Bulgaria and Malta have opposed this plan and opposed it together with Hungary.
And over the weekend, the newly installed prime minister of the Czech Republic, Andrej Babiš, also voiced his opposition to the loan.
The EU is also facing concerted US efforts to undermine the rescue using Russian assets.
The Trump administration is actively pressuring many European countries to withdraw their support for the loan, senior EU sources told POLITICO.
Washington is reportedly keen to seize Russian money to use for US-led reconstruction projects in Ukraine.
Russia has also filed a lawsuit against Euroclear, seeking damages of up to €196 billion.
German Chancellor Friedrich Merz underlined the importance of the meeting to be held in Brussels this week. He told reporters that the European Union would be “seriously damaged for years” if it failed to reach an agreement on the loan.
