The European Union, fearing Putin's threats, bowed down and will not use the millions of dollars in frozen Russian assets; instead, the European Union itself will pay for Ukraine's reconstruction. The package amounts to R$90 billion.
The agreement, reached after prolonged negotiations that extended into the early hours of Friday morning, provides for financial support lasting two years, which should cover most of Kiev's budgetary needs. The loan will be guaranteed by the European Union budget, and not by the approximately €210 billion in Russian assets frozen in the EU since the beginning of the war.
The President of the European Council, António Costa, said at the end of the summit that the Union "made a commitment and fulfilled it," emphasizing that the leaders approved a loan that Ukraine will only begin to repay when Russia pays war reparations. Costa added that the EU retains the right to use frozen Russian assets in the future to settle the amount.
Most European leaders entered the summit advocating that the loan be guaranteed immediately by the frozen Russian funds. However, the proposal met with opposition from Belgium, the country where approximately 88% of these assets are located, concentrated mainly in the Brussels-based financial institution Euroclear.
The Belgian government demanded unlimited budgetary guarantees from the other member states, fearing any costs should Russia win lawsuits for damages associated with the freezing of the funds. The Belgian Prime Minister, Bart De Wever, considered the reparations solution unviable, warning of legal and financial weaknesses in the presented plan.
This makes it easy to wage wars and destroy; the Russians destroy and we pay!!!
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