Luxembourg Prime Minister Luc Frieden has said that in his view there are two realistic options on the table for the future financing of Ukraine as EU leaders meet in Brussels on Thursday.
At a doorstop with media as he entered the summit, Frieden said that it was important to resolve the issue of financing. “Ukraine is fighting for us. It’s something that goes beyond Ukraine,” he said.
Using the EU budget may be easier technically and would not jeopardise the financial stability of the Eurozone, even if it could prove difficult to obtain the required majority support from member states, Frieden said.
Using frozen sovereign assets of the Russian central bank, would be unprecedented Frieden said. “So, it raises complex legal issue that are often underestimated in the public opinion and by the media.”
Foremost among the legal issues is the threat from Russia to sue Belgium, where most of the assets are held. Belgian Prime Minister Bart De Wever has been holding out against pressure from the European Commission and other member states to use the assets.
“We need to give Belgium the necessary assurances, the guarantees,” he said. That sort of commitment poses problems for some member states, the Luxembourg prime minister admitted. “So, a difficult day ahead, but I am optimistic that we can find a solution if we really want to support Ukraine in the long term.”