The Government said this Friday, December 12, that it supports the proposal for a reparations loan to Ukraine based on Russian assets immobilized in the European Union (EU), trusting that it will be approved by European leaders next week.
“We support the Commission’s proposal for a loan based on war reparations that Russia will pay to Ukraine when the war ends, [mas] We also understand Belgium’s concerns [porque] there are legal, economic, liquidity, solvency and credit risks of the institution itself and the country”, said the Minister of Finance, Joaquim Miranda Sarmento.
Speaking to Portuguese journalists in Brussels at the end of the meeting of EU finance ministers, the Portuguese official said that “very significant work is underway by the Commission and the 27 Member States to make it possible at the next European Council, which is in a week’s time, […] reach an agreement and quickly this money can reach Ukraine, which urgently needs to continue defending itself and continue its military capacity to resist the invader”.
“I am confident that the solution to the Russian assets will be possible, especially because it does not require the unanimity of the 27,” he said.
Last Tuesday, the president of the European Council, António Costa, said that European Union leaders are “very close” to an agreement to financially support Ukraine until 2027 through a reparations loan based on immobilized Russian assets.
Even so, he admitted extending the European summit scheduled for one day by three days until there is an agreement.
Bilateral meetings are currently taking place in Brussels to try to unlock European financing options for the country invaded by Russia in February 2022.
Diplomatic efforts also persist to achieve a fair and lasting peace in Ukraine, with the EU wanting to reinforce Kiev’s negotiating position, which means increasing pressure on Moscow.
Last Wednesday, the European Commission proposed a controversial reparations loan based on frozen Russian assets and a smaller credit based on the EU budget, to support Ukraine in 2026 and 2027.
The first proposal faces opposition from Belgium, a country that hosts most of the frozen Russian assets (through Euroclear) and that demands clear guarantees and commitments from other Member States to protect itself legally, as it does not want to take the risk of running out of funds if Russia does not pay reparations.