Brussels has proposed a legally contentious workaround to raise up to €210bn for Ukraine backed by immobilised Russian state assets, including emergency powers that in effect strip Hungary and other dissenting countries of their veto.
The proposal, which would mark a watershed moment for the EU by enabling sanctions to be imposed without unanimity, is a last-ditch attempt to ensure Kyiv’s economic survival by bypassing potential opposition from Russia-friendly countries such as Hungary or Slovakia.
The “reparations loan” would leverage up to €210bn of Russian assets immobilised by EU sanctions to fund Kyiv, which would not have to repay the loan until Russia pays reparations. EU countries would have to back the loan with national guarantees.
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