Ukraine-Russia war latest: EU talks to hand Kyiv €140bn in frozen Russian assets break down over legal fears
The EU has failed to agree a deal to back Ukraine with the help of frozen Russian assets valued at €140bn ($163.2bn).
The proposed loan would have met Ukraine’s “pressing financial needs” and propped up its war-ravaged economy for the next two years, but could not be agreed due to legal concerns raised by Belgium.
“Russia’s assets should remain immobilised until Russia ceases its war of aggression against Ukraine and compensates it for the damage caused by its war,” a declaration by the leaders said. The matter of the loan has been pushed to the next EU summit in December.
Belgian PM Bart De Wever has said he could only support the plan if he had strong assurances that it was legal and that other EU countries would share the risks involved.
Belgian financial institution, Euroclear, holds the assets that would be used to fund the loan.
Meanwhile, Vladimir Putin has warned that Moscow will not bow to US pressure after the Trump administration imposed sanctions on Russia’s two largest oil companies.
The sanctions on Rosneft and Lukoil are an “unfriendly” act which “will have certain consequences”, Putin said, adding that Russia’s energy sector feels confident.
