EU Facesโ Internal Division Over funding Ukraine with Russian Assets
The European Union is grappling with internal disagreements over โขa proposal toโ utilize frozen Russian assets to finance Ukraine’s reconstruction, as โa key deadline for agreement approaches at the December EU leaders’โ summit. Theโข debate is further complicated by a recently โฃsurfaced US-Russiaโข peace plan draft and a corruption scandal in Kyiv.
The core โขof the dispute centersโ on โconditions attached to the proposed “reparationsโ loan.” While European Commission President Ursula von der Leyen champions the plan as a means to “make Russia pay” for theโค war in Ukraine and insists European taxpayers will not bear the financial burden, Belgian โฃPrime minister Jan De Wever has voiced strong opposition. Deโ Wever argues that if Russia is not definitively deemed the “losing party” in the conflict, it could reclaim its sovereign property currently under sanctions. He warns that such a scenario would collapse the reparations loan, leaving European taxpayers responsible for the funding.
This position sharply contrasts with โthat of other EU leaders, like German Chancellor friedrich Merz,โฃ who view โฃthe frozen Russian assets as crucial leverage in negotiations with Moscow.Merz emphasized the โneed for a swift โagreement to bolster the EU’s negotiating position andโข demonstrate solidarity with Ukraine.
The debate was ignited further by the revelation of a secret US-Russia peace plan, โคinitially proposing a controversial model that would have allowed both Washington and Moscow to benefit commercially from the Russian assets.โ While a provision enabling this has reportedly been removed following US-Ukraine talks, theโฃ plan underscored theโค value of theโข assets and prompted renewed consideration โamong EU members.
Adding to the pressure, Russian President Vladimir Putin issued a warning against seizing the funds, labeling it “theftโข of someone else’s property” and threatening reciprocal measures.โ Under the EU proposal, Moscow would โข be allowed to recover the immobilized assets if it agreed to compensate Ukraine for war damages.
The timing of thisโ debate is especially challenging for Ukraine, as it faces a spiraling corruption scandal that led to โคthe resignation of Andriy Yermak, President Volodymyr zelensky’s chief of staff and key negotiator. Diplomats acknowledgeโข the scandal presents a challenging optic for securing further European funding, though they maintain that aid should not be contingent on โinternal Ukrainian affairs.
The European Commission, initially criticizedโข for downplaying De Wever’s concerns,โข is โattempting to navigate the divisions. Commission spokesperson Paula Pinho acknowledged โthe โฃlegitimacyโข of โคthe questions being raised and stated the Commission is working to address concerns.While not ruling out a qualified majority vote to overrideโ Belgium’s objections, Pinho indicated that such a step has not yet been considered.