(VOVWORLD) - The European Commission proposed on Wednesday an unprecedented use of frozen Russian assets or international borrowing to raise 105 billion USD for Ukraine to cover its struggling military and basic services in its conflict with Russia for the next two years.
The European Union plans to provide a “compensation loan” secured by frozen Russian assets.
Commission President Ursula von der Leyen said the proposal to EU member states took into account Belgium’s concerns that the plan could pose legal and financial risks if Russia files a lawsuit. The proposal also applies to other EU financial institutions holding Russia’s frozen assets.
An alternative option – a loan guaranteed by the EU budget – needs approval from all 27 member states. But this is unlikely, as Hungary has repeatedly opposed EU support for Ukraine.