EU plan to use Russian assets for Ukraine aid
The European Commission is proposing to fund Ukraine with EU-backed promissory notes, an alternative to seizing frozen Russian assets, according to reports.
The proposal was discussed on September 11 at a meeting of the Commission and finance ministers from member states.
The plan would use revenue from these assets in a new mechanism called "reparatory credit," with Ukraine receiving the money immediately and only repaying it once Russia has paid reparations.
The Commission has also suggested converting the bank deposits associated with these assets into zero-coupon bonds, underwritten jointly by EU member states.
The move comes as Ukraine faces a budget deficit of at least €8bn next year. The EU is looking at ways to use not only the interest but also the assets themselves, which are estimated at €200bn, to provide financial support.
Sources quoted by Politico said the proposal from Brussels had been met with "cautious enthusiasm," but no concrete decisions have yet been made.
Translation by Iurie Tataru
