Four sources revealed on Tuesday that the European Commission plans to present a legal proposal this week to use frozen Russian assets to fund Ukraine while retaining the possibility of borrowing through financial markets or a combination of the two. EU leaders reached an agreement in October promising to meet Ukraine's “urgent financial needs” within the next two years, but did not approve a plan to use €140 billion of frozen Russian sovereign assets in Europe as loans to Kiev due to concerns raised by the Belgian side. Most of the Russian assets frozen in Europe are held in accounts with the Belgian securities depository “European Clearing House”, and the Belgian government has repeatedly expressed concerns about potential legal risks. According to the Commission's plan, Ukraine will need to repay this loan only if Russia is to pay compensation for damage caused by waging war against neighboring countries. The European Commission is expected to pass the proposal on Wednesday, which includes its favored plan to provide compensatory loans linked to the cash balance of Russia's frozen central bank assets.

Four sources revealed on Tuesday that the European Commission plans to present a legal proposal this week to use frozen Russian assets to fund Ukraine while retaining the possibility of borrowing through financial markets or a combination of the two. EU leaders reached an agreement in October promising to meet Ukraine's “urgent financial needs” within the next two years, but did not approve a plan to use €140 billion of frozen Russian sovereign assets in Europe as loans to Kiev due to concerns raised by the Belgian side. Most of the Russian assets frozen in Europe are held in accounts with the Belgian securities depository “European Clearing House”, and the Belgian government has repeatedly expressed concerns about potential legal risks. According to the Commission's plan, Ukraine will need to repay this loan only if Russia is to pay compensation for damage caused by waging war against neighboring countries. The European Commission is expected to pass the proposal on Wednesday, which includes its favored plan to provide compensatory loans linked to the cash balance of Russia's frozen central bank assets.