Kaja Kallas, head of the EU diplomacy, warns that the plan to use frozen Russian assets to support Ukraine is becoming increasingly difficult.

Kaja Kallas stated that the European Union's plan to use Russian sovereign frozen assets to finance Ukraine's war effort is becoming increasingly complicated. In an interview, Kallas emphasized that the most viable option is the loan for repairs, but negotiations with Belgium, which holds the majority of the 210 billion euros in frozen assets, are difficult. Belgium, led by Prime Minister Bart De Wever, firmly opposes the loan, demanding in return the issuance of common debt to support Ukraine.

Opposition to the use of Russian assets for financing military expenditures is growing, with Italy, Bulgaria, and Malta joining Belgium in calling for alternative options. Kallas warned that other funding methods are not effective, especially considering the opposition from Hungarian leader Viktor Orbán. The European Commission has estimated that Ukraine will face a deficit of 135 billion euros in 2026 and 2027, and the issuance of common debt requires unanimity from the 27 member states, while the loan can be approved with a qualified majority.

Belgium is essential in these negotiations, and Kallas highlighted the importance of its agreement for any decision. EU ambassadors will meet to discuss the amendments proposed by the European Commission, while the governments of the member states have agreed to maintain the freezing of Russian central bank assets indefinitely.