Some 210 billion Russian euros are believed to be frozen in the EU, mainly within the Brussels-based depository institution Euroclear. The exceptional revenues generated by the fixed assets of the Central Bank of Russia would amount to almost 3 billion euros per year, which would allow Ukraine to repay the loan over several decades.
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The objective is to disburse G7 funds between the end of this year and the end of 2025. On the other side of the Atlantic, things seem to be accelerating, after several weeks of vagueness, due in particular to the inability of Europeans to guarantee Washington that EU sanctions will be imposed over a period longer than 6 months. Hungary has in fact vetoed this regulatory change, pending the result of the presidential election in the United States.
But according to the Financial Times, it is precisely the prospect of a possible return of Donald Trump to the presidency which would accentuate the Biden administration’s desire to disburse the American share of this Western initiative before the end of the year. It could go up to 20 billion dollars. Which should also reduce the European share somewhat.
Just last week, Ukrainian President Volodymyr Zelensky was in Brussels to reiterate his country’s immense needs, as Russia continues to target Ukraine’s energy infrastructure as winter approaches, and North Korean troops would arrive to support her.
For Johan Van Overtveldt (N-VA, ECR), this North Korean presence in Russia means “de facto China’s entry into this conflict”. The European support voted on Tuesday is in his eyes essential for Ukraine’s defense industry, “its freedom and therefore ours”.
“Last week, media reported that the EU’s support for Ukraine was a lot of words but few facts, a lot of bla-bla-bla, but little boom-boom,” according to Wouter Beke (CD&V, PPE). “Today we prove the opposite.” He also considers that the supply of North Korean troops to Russia proves that the conflict is no longer just regional, but now concerns “world peace”.
The EPP (Christian Democrats), Renew (liberals and centrists) and the Greens/ALE voted unanimously. Support was very broad among the socialists, where Raphaël Glucksmann also called for the seizure of the Russian 210 billion themselves, an avenue considered by the Commission to be legally risky. The Left, not unanimously, called for a partial cancellation of the Ukrainian debt to allow the country to get back on track.
On behalf of the Commission, Didier Reynders welcomed the broad support of Parliament. “However, the lack of unanimity proves the importance of fighting for the values of a strong EU, for democracy, the rule of law and human rights. This is what we are doing with this proposal.”
The Council (Member States) has already approved the text and must now adopt the regulation by written procedure, for entry into force the day after its publication in the Official Journal of the EU.
