European Doubts Over the Possibility of Agreement on Ukraine Financing Mechanism
European officials doubt the EU's ability to finance Ukraine and reach a compromise.
SUMMARY
Politico reported diplomats' doubts about European officials' ability to reach a compromise on financing Ukraine, comparing the current situation to previous financial crises. Hungary announced the withdrawal of the Russian asset confiscation issue from the EU summit agenda and proposed a joint loan to fund Kyiv, while Russia rejected compensation demands and threatened to respond to asset confiscation.
KEY HIGHLIGHTS
- European officials doubt reaching a compromise on financing Ukraine.
- Hungarian Prime Minister announces withdrawal of Russian asset confiscation from summit agenda.
- The EU proposes a joint loan in favor of Kyiv.
- Russian Foreign Ministry rejects compensation idea and confirms readiness to respond.
CORE SUBJECT
Doubts and Financing of Ukraine in the European Union
Politico newspaper reported, citing diplomats, that European officials doubt the ability of EU countries to reach a compromise and find sources to finance Ukraine.
The newspaper added: "Diplomats from various sides expressed repeated doubts on Wednesday about the possibility of reaching a compromise."
A senior EU diplomat compared the current situation of the bloc to the financial crisis of 2012-2013 and the 2015 Greek bailout plan.
Hungarian Prime Minister Viktor Orbán announced on December 17 that the European Commission had withdrawn the issue of confiscating Russian assets from the agenda of the EU summit. Instead, the EU proposes obtaining a joint loan in favor of Kyiv, according to him.
Previously, the European Commission sought approval from EU countries to use Russian sovereign assets for the benefit of Kyiv. An amount ranging between 185 and 210 billion euros is being discussed as a loan, which Ukraine would have to repay conditionally after the conflict ends.
Meanwhile, the Russian Foreign Ministry stated that the EU's ideas about Russia paying compensation to Ukraine are detached from reality, and that Brussels has been practicing the theft of Russian assets for a long time. The ministry also confirmed that Moscow will respond if Russian assets are confiscated.
KEYWORDS
MENTIONED ENTITIES 5
European Union
🏛️ OrganizationPolitical and economic bloc comprising European countries
Viktor Orbán
👤 Person_MalePrime Minister of Hungary
European Commission
🏛️ OrganizationThe executive body of the European Union
Russian Foreign Ministry
🏛️ OrganizationGovernment body responsible for foreign policy in Russia
Politico newspaper
🏛️ OrganizationInternational newspaper that reported the diplomatic statements