Kallas: Decision on loans based on Russian frozen assets to strengthen EU's position

An agreement on reparation loans based on Russia's frozen assets will undoubtedly strengthen the European Union's (EU) position in relations with Moscow, which must compensate Ukraine for the damage caused during the war, EU High Representative Kaja Kallas stated at a press conference following the Foreign Affairs Council meeting, Report informs.

"It will definitely strengthen the European position vis-à-vis Moscow, that is very clear. We need to move on with this. This is clear that Russia owes reparations for the damages that they have caused to Ukraine, and the Reparations Loan based on the frozen sovereign assets of Russia, is actually the right basis for it. I do not, in any way, diminish the risks or the worries that Belgian government has. When we had the discussions in the European Council, everybody was saying that we are ready to share all the risks and the burden.

Therefore, we need to work on this, on the legislative proposal to address all the risks, or mitigate all the risks, and to shoulder the burden regarding those risks. But we definitely need to move on.

Because, if I would be Russia, I would also try to outlast us to see whether we get the funding for Ukrainian defense or not. If not in the short term, then, I would come to the negotiation table and ask even more.

I think again, let us come back to the first point, which is that Ukraine has not attacked anybody. It is Russia that has attacked, and we need to make sure that this stops and it does not happen again," Kallas said.

"We must understand that Belgium is under a lot of pressure. This is very clear. There has been options paper provided, but if you look at those options, the reparations loan is the most viable option, because bilateral contributions are not covering this, like in the previous question, it was also seen that not all Member States are carrying the burden.

Eurobonds or raising capital together is also out of question for some Member States to do it all together and the reparations that Russia owes to Ukraine - actually, it is really Ukrainian money – if you think about the damages that Russia has caused, this is the best solution.

Again, I want to stress that I do not, in any way, diminish the worries that Belgium has, but we can address those. We can shoulder those risks together, and we need to work on a viable solution to go on with the reparations loan. It sends a three-way message – a very strong message - to Ukraine that we are there to help them to defend themselves. The second message to Moscow, that they cannot outlast us, and a third message also to Washington, that we are taking very strong and very credible steps," the High Representative noted.