Automatically translated version. May contain inaccuracies compared to the original.
The EU has begun assessing Ukraine's financing deficit amid calls to use frozen Russian assets. The funds of the aggressor country are predominantly held in European banks.
The EU assesses Ukraine's financing deficit. The European Commission stated that it is examining the issue of the deficit of funds in Ukraine. This is needed for the future "unfreezing" of Russian assets in European accounts. Last year, EU leaders agreed to provide Ukraine with a loan of 90 billion euros. This happened after an alternative financing plan for Kyiv through frozen Russian assets did not receive unanimous support. The EU Executive Board was asked to resume work on options for using Russian assets. Previously they were mostly kept in Euroclear in Brussels. The Commission's Chief Spokesperson, Paola Pynio, said that the main focus is still on obtaining funds for Ukraine from a loan of 90 billion euros. "Frozen assets are not a priority task. We have worked a lot on this, and now the focus is on something else." "Auditing" Ukraine In August, Ukraine stated that it faced a deficit of 27 billion dollars that needed to be filled to continue the war against Russia. This week, EU Commissioner for Economy Valdis Dombrovskis met with Ukraine's prime minister, Serhiy Korotky, and IMF Managing Director Kristalina Georgieva. The meeting aimed to understand the fiscal developments in Ukraine, said the Commission spokesperson Balazs Ujvarri. The outcome of these meetings, according to the spokesperson, is that additional expert conclusions will be required. "So we must first do this work. We need to determine needs before we can potentially discuss ways to address them." The Russian assets issue The call for greater funding for Ukraine again raised the issue of using Russia's assets. Recently more than 120 Europarliament members supported the Renew centrist group's proposal. It proposed making the EU the custodian of Russian assets rather than Euroclear and other institutions. This is intended to dispel Belgium's concerns about being left alone with the financial and political consequences of the asset plan. "Frozen Russian accounts should be transferred to a new EU instrument that will act as custodian and bear all legal obligations to the Central Bank of Russia," the letter states. The Commission said it is studying this proposal.
Earlier, RBC-Ukraine wrote that the Parliamentary Assembly of the Council of Europe proposed a new mechanism. It would allow Ukraine to transfer frozen Russian assets based on rulings of the European Court of Human Rights. In addition, Ukrainian diplomats have intensified work with the EU, whose banks hold billions of frozen Russian assets. Partial payment and broader guarantees could help overcome the stalemate with Belgium.
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