Ukrainian President, Volodymyr Zelenskyy has said that there are a few ways Kyiv can get funding, but he stressed that “the most rightful” way is through reparations.
Speaking to reporters, he noted that it will ensure that “Russia understands that it’s guilty and will have to pay reparations.”
Zelenskyy warned of financial difficulties if Ukraine doesn’t secure fresh funding as it will have a foreign aid deficit of up to 50 billion euros ($59bn) next year if European countries do not use the Russian money to pitch in.
Zelenskyy’s remarks come as European Union leaders have gathered in Brussels to hold a vote on whether they are able to use nearly $200bn in frozen Russian assets to support Ukraine over the next two years.
The bloc is debating a complex scheme to use about 210 billion euros ($246bn) in Russian assets – the bulk of which is frozen in Belgium – to generate a “reparations loan” for Ukraine. Kyiv would only pay back the money once the Kremlin compensates it for the destruction it has wrought.
Belgium is demanding that EU member states give binding commitments to cover all possible liabilities and that assets held in other countries are used as well. EU leaders said before the talks that Belgium’s concerns had been addressed during negotiations, while the country’s prime minister said the deal on the table offered insufficient guarantees.
The commission has put a backup plan on the table that involves the EU raising the money itself to loan to Ukraine. But that move has so far been shelved as it requires unanimous approval from the EU’s 27 countries, and Hungarian leader Viktor Orban is firmly against.
Either way, the EU insists that it has to make a decision on how to fund Ukraine at the summit, as the cash crunch will come for Kyiv next April.
Also, Zelenskyy noted that decision on the frozen assets must come before the end of the year. He warned that Ukraine would need to cut its drone production if it doesn’t receive more money by spring.
He stated that Ukraine is doing everything it can to end the war, but there is no guarantee that this process will succeed, particularly given less than conciliatory comments from the Kremlin.
He said that Ukraine must be in a position to remain strong and continue to be able to fight.
He said that he had a good conversation with Belgium’s de Wever, and they understand each other’s position, but as Ukraine is at war, it faces even greater risks.
On EU accession, Zelenskyy talked about the importance of the process not getting blocked by any of the member states, as he said that joining the bloc should be considered a part of broader security guarantees for Kyiv.
So, he added, that the prospect of joining the EU is of “utmost importance,” as is the principle that it shouldn’t be conditional on Russia’s permission or support.
Also, Zelenskyy asserted that there is progress in the US-led peace talks but raised some concerns about some areas in which Russia is expected to push back on what is being discussed.
He said that includes the presence of European stabilisation force in Ukraine, stressing the importance of that solution so that Kyiv has security guarantees from both the US and Europe.
Russia Vows Retaliation
Meanwhile, Russia has warned that it will respond with “the harshest” retaliation if Europe uses frozen Russian state assets to support Ukraine – a threat that has sharpened divisions inside the EU.
President Vladimir Putin has branded the European plans as “piracy” and “property theft,” while Russian officials have openly discussed seizing remaining western assets in Russia if the bloc moves ahead.
In a short press statement, Russia’s central bank said that “in connection with the ongoing attempts … to illegaly seize and use” its assets, it just wanted to warn everyone that would take legal actions to “recover damages from European banks in a Russian arbitration court,” demanding not just the value of “illegally withheld assets,” but also “lost profits.”
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