Kallas admits lending with Russian assets is ‘increasingly difficult’, but stresses there is no alternative

BRUSSELS, December 15 (EUROPA PRESS) –

The European Union’s top foreign policy representative, Kaja Kallas, on Monday acknowledged the growing difficulties for the EU to reach an agreement on the loan to Ukraine using frozen Russian assets, although she insisted that it is nevertheless the “most credible” option and that there are no alternatives to this scenario on the table.

“The most credible option is the reparations loan, and that is what we are working on. We are not there yet and it is increasingly difficult, but we are doing the work,” declared the head of European diplomacy upon her arrival at the meeting of foreign ministers in Brussels.

The final Foreign Affairs meeting of the year marks the start of a key week for the EU to outline its support for Ukraine, with the debate on reparations loans with frozen Russian assets in Europe at the bloc’s leaders’ table on December 18-19. “We still have a few days left,” said the former Estonian Prime Minister, who acknowledged that there were no viable alternatives to this option.

After Malta, Bulgaria, the Czech Republic and Italy joined the reluctance of Belgium, the country which hosts the headquarters of Euroclear – the institution which keeps the majority of Russian assets frozen in Europe – Kallas highlighted the difficulty of the debate and the “different pressures from different sides”.

“We also need to have a very clear vision. The other options don’t really work,” he argued, pointing out that the EU can approve the reparation loan with a qualified majority of its member states, while other avenues, such as financing Ukraine with Eurobonds, require unanimity and have already been ruled out in the past.

The summit of EU leaders is being convened to reach the necessary consensus to provide the financial support needed to keep Ukraine afloat for the next two years, because, regardless of whether the war ends, the Ukrainian military estimates it will need around 70 billion a year to continue deterring Russia.