Kallas: Russia owes Ukraine reparations, 'reparation loan' based on Russian assets is Ukrainian money
High Representative of the European Union for Foreign Affairs and Security Policy Kaja Kallas states that the immobilized Russian assets are essentially Ukrainian money because it was the Russian Federation that caused great destruction to Ukraine, and therefore providing Ukraine with financial assistance based on Russian assets is fair.
She voiced this argument on Monday in Brussels at a press conference following the meeting of the EU Council on Foreign Affairs (Defense), commenting on the request of journalists on the letter of Belgian Prime Minister Bart de Wever, in which he denies this option for financing Ukraine. As is known, it is in Belgium that the lion's share of the immobilized Russian assets is held in Euroclear.
"The reparations that Russia owes Ukraine are really Ukrainian money, if you think about the damages that Russia has caused. And this is the best solution. Again, I want to stress that I don't in any way diminish the risks that Belgium has, but we can address those, we can show those risks together, and we need to work on a viable solution to go on with the reparations loan. It sends a three-way message: a very strong message to Ukraine that we are here to help them defend themselves, a second message to Moscow that they will not be able to survive us, and a third message also to Washington that we are taking very strong and very incredible steps," Kallas is convinced.
She recalled that the European Commission had provided a document with options. "But if you look at these options, a reparation loan is the most viable option, because bilateral contributions do not cover this. As in the previous question, it was also clear that not all member states are carrying this burden. Eurobonds or joint capital raising are also not possible for some member states to do it all together," the EU High Representative detailed.
Kallas also denied that the so-called reparation loan could be an obstacle in negotiations with the Russians. "It will definitely strengthen Europe's position towards Moscow. This is absolutely clear. We need to move on with this. This is clear that Russia owes reparations for the damage they have caused to Ukraine, and a reparation loan based on the frozen Russian sovereign assets is actually the right basis for it," she said.
The High Representative said that this issue was also discussed during today's meeting of the EU Council at the level of defense ministers. Kallas said that in October, EU leaders agreed on financing Ukraine for the next two years. Today, ministers insisted that we urgently need to agree on financing options. Multi-year financing will fundamentally change the situation in Ukraine's defense. A stronger Ukraine means a faster end to Putin's war. Since the sooner Putin realizes that he cannot outlive us, the sooner this war will end. Our work to reach a consensus on financing continues, she said.