In the wee hours of Friday morning, EU leaders agreed on a big new interest-free loan for Ukraine, totaling 90 billion euros over two years. As the fifth anniversary of the full-scale invasion approaches, Ukraine would have started running out of money in the spring, and the loan will keep it afloat. However, the European Council did not use some 210 billion euros worth of Russian assets held in the EU, mostly in Belgium, to back the loan. Belgium’s Prime Minister, Bart De Wever, had strongly opposed the plan, as had Moscow, Washington, and a number of other EU member states, notably Italy.
The new EU loan, which doesn’t have to be paid back unless Russia makes reparations after the war, keeps Ukraine from having to accept a settlement to end the war that would force it to cede the Donbas, a heavily defended part of its territory that the U.S. has been pressuring it to give up. However, EU members couldn’t reach agreement on the Russian frozen assets, and although they remain frozen, it’s unclear if they will ever be used to support Ukraine.
Was this a win for Ukraine? The EU? Can Putin claim victory? To discuss these questions, I spoke with Dave Keating, who covered the 16-hour summit. He writes the Gulf Stream Blues newsletter. He’s also the author of a new book, The Owned Continent: How to Free Europe from American Military, Cultural and Economic Dependence.
If you’re interested on how the Russian frozen asset loan plan works, check out my interview earlier this week with Hugo Dixon, one of the creators of the plan.
Hugo Dixon explains the plan to use Russian frozen assets for Ukraine
On Thursday, EU leaders are meeting in Brussels to discuss a financing plan to use frozen Russian assets held in Belgium to fund Ukraine’s cash-strapped government for the next two years. As the Trum…
