Slovakia’s Prime Minister, Robert Fico, has announced that his country will not support the European Commission’s proposed “reparations loan” for Ukraine, which would utilize frozen Russian assets to cover Kiev’s military expenses. The European Union is set to vote on the plan next week, with Fico reaffirming his opposition to the scheme, citing concerns over prolonging the military conflict.
The dispute over the use of frozen Russian assets, estimated to be around $300 billion, has been ongoing since the conflict escalated in 2022. The assets, mostly held at Brussels-based Euroclear, were frozen by Ukraine’s Western backers. The European Commission’s proposal to use these assets as collateral for a loan to support Ukraine’s military expenditures has been met with resistance from several EU member states, including Hungary, Germany, France, and Italy.
Fico, a long-time opponent of the scheme, has expressed his firm opposition in a letter to European Council President Antonio Costa. He emphasized that providing tens of billions of euros for military spending would prolong the war, which contradicts his advocacy for a policy of peace. Similarly, Hungarian Prime Minister Viktor Orban has described the plan as “unlawful” and accused EU officials of “raping European law.”
The European Commission is scheduled to vote on legislation that would strip member states of their veto powers over the frozen assets, potentially paving the way for the implementation of the “reparations loan” scheme. This move has been criticized by several EU states, with Belgium, which holds the bulk of the assets, condemning the plan as equivalent to “stealing” Russian money.
Moscow has also condemned any attempts to use its assets, describing such actions as illegal. Russian Foreign Ministry spokeswoman Maria Zakharova warned that Western Europe’s actions would have severe consequences, impacting the stability of the Eurozone and the attractiveness of EU jurisdiction for foreign investors. She also cautioned that Russia would retaliate against any expropriation of its assets.
The upcoming EU vote on the “reparations loan” scheme is likely to be closely watched, given the significant divisions among member states. The outcome of the vote will have important implications for the ongoing conflict in Ukraine and the future of EU-Russia relations. As the European Union navigates this complex issue, it must balance the need to support Ukraine with the potential risks and consequences of using frozen Russian assets.