Kallas believes reparation loan to definitely strengthen EU's position on Russia
High Representative of the European Union for Foreign Affairs and Security Policy Kaja Kallas states that Belgium is under significant pressure to provide financial assistance to Ukraine based on frozen Russian assets, while she is convinced that the reparation loan will strengthen the EU's position in negotiations with Russia on ending the war in Ukraine.
"It [the reparations loan] will definitely strengthen the European position vis-à-vis Moscow, that is very clear. We need to move on with this. This is clear that Russia owes reparations for the damages that they have caused to Ukraine, and the Reparations Loan based on the frozen sovereign assets of Russia, is actually the right basis for it. I do not, in any way, diminish the risks or the worries that Belgian government has. When we had the discussions in the European Council, everybody was saying that we are ready to share all the risks and the burden. Therefore, we need to work on this, on the legislative proposal to address all the risks, or mitigate all the risks, and to shoulder the burden regarding those risks. But we definitely need to move on," Kallas said in her statement to the press on Tuesday following a meeting of EU defense ministers, which discussed Russia's war against Ukraine and European defense.
She reported on the prepared document with possible alternatives to the reparations loan, but called the latter "the most viable option, because bilateral contributions are not covering this." The EU High Representative explained that not all EU member states bear the same financial burden, and Eurobonds or joint capital raising are also unacceptable for some member states.
"The reparations that Russia owes to Ukraine – actually, it is really Ukrainian money – if you think about the damages that Russia has caused, this is the best solution. Again, I want to stress that I do not, in any way, diminish the worries that Belgium has, but we can address those. We can shoulder those risks together, and we need to work on a viable solution to go on with the reparations loan," Kallas said.
She said Russia does not want this reparations loan to be granted, but "we can shoulder 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 there to help them to defend themselves. The second message to Moscow, that they cannot outlast us, and a third message also to Washington, that we are taking very strong and very credible steps," Kallas stressed.
As reported, EU leaders are expected to discuss the issue of financing Ukraine at a summit in Brussels on December 18.