The EU has developed a plan to finance Ukraine using frozen Russian assets.

In Brussels, at the EU forum, a plan was presented to use frozen Russian financial assets to support Ukraine without formal confiscation. EU leaders agreed with the European Commission’s initiative and decided to continue its development, reports The Wall Street Journal.

European lawyers believe that asset confiscation under sanctions against Russia is unacceptable and could create a dangerous international precedent. Until recently, only the income from the frozen $200 billion was used to help Ukraine.

Seeking Alternatives

Amid increasing Russian provocations and the reduction of American military aid, Europe has intensified the search for new financing methods for Ukraine. Hungary and Slovakia oppose issuing new loans to support Kyiv. In response, European Commission researchers proposed opening a credit line of $200 billion, with Kyiv obliged to repay the loans after receiving reparations from Russia.

Condition for Lifting Sanctions

The payment of reparations to Ukraine is one of the conditions for lifting European sanctions against Russia. This would mean that the frozen assets would essentially remain under the control of European countries or be returned in the form of repayment of the Ukrainian-Russian debt after Kyiv receives military reparations from Russia.

Support from Key EU Countries

According to The Wall Street Journal, the plan has already received support from influential EU countries such as Germany and France. However, Belgium is cautious, fearing the legal consequences of the new mechanism. The EU financial center insists on guarantees of legality and reliability of the proposed scheme before agreeing to its implementation.

Consensus Not Required

Consensus is not required for the adoption of the proposed scheme, which allows bypassing the resistance of Hungary and Slovakia. Thus, the plan has a high chance of implementation, considering the support of leading states.