The USA lobbied the EU to block loans to Ukraine from Russian assets: arguments from Washington.

According to ТСН: The United States is actively working to convince the European Union (EU) to refrain from using frozen assets of the Russian Central Bank for significant loans to Ukraine. American officials believe that these assets should remain in reserve for peace negotiations between Kyiv and Moscow, rather than being used to prolong the conflict, as indicated by European diplomats.

US Argument: Assets as Leverage for Peace

According to anonymous sources, US representatives are confident that these assets could be crucial for a potential peace agreement, and using them to finance Ukraine would only prolong the war. Meetings are taking place at a difficult time for Ukraine, as Kyiv feels pressure from the US to possibly reach an unfavorable deal with Russia. With the reduction of American aid, the main financial burden is shifting to Europe.

• EU Proposal: Recently, the EU proposed to use frozen assets to secure a loan of €90 billion ($105 billion) to finance Ukraine's economic and military needs for the next two years.

• Frozen Funds: A total of approximately €210 billion of frozen Russian assets are held in the EU.

• The US 'Peace Plan': Washington is also considering using Russian assets in negotiations with Moscow for funding reconstruction after the war ends. This issue remains contentious, along with the status of Ukrainian territories and security guarantees for Ukraine.

Europe Resists Pressure

European leaders emphasize that the issue of using Russian assets belongs exclusively to them, as most of them are held in Europe. German Chancellor Friedrich Merz, who supports this initiative, noted:

“There is no possibility of leaving the funds we mobilize to the United States. The US government knows this, and this is also the negotiating position of the German government... This is also a consensus at the European level. There are absolutely no disagreements on this matter. This money must go to Ukraine — it must help Ukraine.”

Merz plans to visit Brussels for talks with Belgian Prime Minister Bart De Wever and President of the European Commission Ursula von der Leyen to convince Belgium to support the EU plan.

Internal Opposition and Loan Mechanism

In addition to pressure from the US, the EU also faces internal opposition, particularly from Belgium, which holds the majority of frozen funds. Belgium demands guarantees to avoid potential legal consequences if Russia wins cases regarding the return of assets.

• EU Loan Conditions: According to the proposal, the loan will be secured by the bloc's budget or bilateral guarantees from member countries. The assets remain frozen, and Kyiv will only need to repay the loan if Russia agrees to finance the country's reconstruction and compensate for the damages caused.

• Other Opponents: Hungary is also not supportive of the plans, and Slovakia has stated it will not support proposals for military assistance to Ukraine.

• Procedure: The proposal will require only a qualified majority of member states for approval.

It should be noted that the European Commission has long proposed to lend €140 billion to Ukraine from frozen assets, however, Belgium opposes this initiative. Belgium holds the largest share of Russian assets in the EU, which are kept in the financial depository Euroclear, and fears possible legal claims from the Russian Federation. Therefore, it urges other EU countries to provide guarantees for this loan.

This situation highlights the complexity of balancing Ukraine's urgent needs with the legal and financial risks faced by European countries. The significant decision about the use of frozen assets could have long-term implications for EU-Russia relations and for Ukraine's reconstruction in the future.