The European Commission is cooperating with the IMF to determine the size of the reparation loan for Ukraine
When determining the size of the reparation loan for Ukraine, the European Commission will take into account the International Monetary Fund’s assessment of Kyiv’s financial needs for the next two years. This was stated by the European Commissioner for Economic Affairs Valdis Dombrovskis, reports Reuters.
The European Union is currently discussing ways to use frozen Russian assets to finance a “reparation loan” to Ukraine in order to strengthen its financial stability in the conditions of war.
“The Commission offers a reparation loan to Ukraine, essentially using the remains of immobilized Russian assets, without touching Russia’s claims to these assets”, Valdis Dombrovskis emphasized after the meeting of EU finance ministers in Copenhagen.
According to him, the proposed model can be applied by all G7 countries that keep frozen Russian assets. He specified that he had already discussed this issue with the finance ministers of the “Simka” during a telephone conversation.
“Now we are working on all modalities, terms, volumes. Regarding volumes, it is also important for us to see the IMF’s assessment of Ukraine’s financial needs for the next two years, and the IMF is now finalizing this work, Valdis Dombrovskis noted.
At the same time, the European Commission does not reveal the details of the mechanism. It is only known that Ukraine will return the loan after receiving reparations from Russia for war losses, and the risks will be divided among the governments of the EU countries. Spanish Finance Minister Carlos Cuerpo said he expects the Commission’s proposal already in October and supports this idea. Instead, Belgian Finance Minister Vincent van Peteghem expressed skepticism about such an approach.
