Today, Zelenskyi will meet the leaders of NATO and the EU – These issues must be resolved

President of Ukraine Volodymyr Zelenskyi will meet the Secretary General of NATO in Brussels on Monday evening Mark Rutten the President of the European Commission Ursula von der Leyenin and the President of the European Council Antonio Costan.

The leaders will meet at around 21:00 Finnish time at the residence of the Secretary General of NATO.

Zelenskyi, arriving in Brussels, commented on the latest US peace proposal on Monday Bloombergille. He said that an agreement has not yet been reached, among other things, on the possible division of territory in Donbas. According to Zelensky, the security guarantees given to Ukraine still need to be discussed.

Commission spokesperson Paula Pinho said on Monday that the evening’s meeting is related to the ongoing peace negotiations.

According to Pinho, the use of Russia’s frozen funds as a war compensation loan for Ukraine is one likely topic that will be discussed.

Belgium has objected to the use of the frozen funds, as the vast majority of them are managed by the Belgian-based Euroclear financial institution. Belgium has feared that the risk of the war reparations loan arrangement would remain on its shoulders alone and that Russia could make demands for up to hundreds of billions of euros.

Commission President von der Leyen met the Belgian Prime Minister on Friday Bart De Weverin and the German Chancellor Friedrich Merzin about the matter. The meeting was described as “good”.

Finland sent a letter

Last week, the Commission presented two solutions to cover Ukraine’s financial needs. The alternatives are a war compensation loan based on Russia’s frozen assets, or a loan based on the EU budget.

According to the Commission’s spokesman, the discussions on war compensation loans will continue until next week’s European Council meeting, when the aim is to make a final decision and find a solution to support Ukraine’s financial needs in 2026 and 2027.

Prime minister Petteri Orpo (kok) and six other EU leaders sent a letter to the President of the Commission and the President of the European Council on Sunday, so that the war compensation loan for Ukraine could be quickly approved.

“Given Ukraine’s current budgetary and military needs, we strongly support the Commission’s proposal for a compensation loan financed from the cash balances of Russian assets frozen in the EU. This is not only the most economically feasible and politically realistic solution, but also based on Ukraine’s right to receive compensation for the damage caused by the attack,” EU leaders of Estonia, Finland, Ireland, Latvia, Lithuania, Poland and Sweden argued.

According to them, the decision on the war compensation loan should be made at the European Council in December, because then the EU will have the opportunity to help Ukraine defend itself and gain a better position in the peace negotiations.

THE FACTS

This is how the war reparations loan decision can proceed

Last week, the Commission presented two models for financing Ukraine. In the Commission’s presentation, a war compensation loan of a maximum of 210 billion euros based on the frozen assets of the Russian Central Bank plays a central role, of which a maximum of 90 billion euros would be paid to Ukraine by the end of 2027.

In the model, the Commission would be authorized to raise a loan (Reparations Loan) from EU financial institutions that hold the frozen funds of the Russian central bank. The funds would be directed as a loan to Ukraine, which would have to repay the loan if Russia pays war reparations. The loan model would be approved in the usual legislative procedure by a qualified majority decision in the Council. In addition, it would require the support of the European Parliament.

In order for the loan model to work, the transfer of Russia’s frozen funds from the financial institutions holding them must be prevented. This is proposed to be done through a separate exception procedure of the Council in accordance with Article 122 EUT. It can be done by a qualified majority decision of the Council without the European Parliament.

The loan would be guaranteed by guarantees based on the gross national income share of the member countries. Or if the member countries decide on it unanimously, the loan guarantee could alternatively be arranged from the flexibility of the multi-year financial framework now, or at the latest in the future framework of 2028–2034.

The proposal package also includes protection structures for EU member states and financial institutions against possible Russian countermeasures and illegal expropriations outside of Russia.

Another model:

Alongside the model based on Russia’s frozen funds, the Commission proposes the possibility of using the EU budget’s room for maneuver as a guarantee to obtain funds from the capital market. The implementation of this model would require a unanimous decision in the EU Council to change the current multi-year financial framework for the years 2021–2027. This model is considered politically even more challenging than the use of Russia’s frozen funds.

Today, Zelenskyi will meet the leaders of NATO and the EU – These issues must be resolved

ByEditor

Finland sent a letter

This is how the war reparations loan decision can proceed

By Editor

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