EU's Bold Move: Navigating Legal Waters to Fund Ukraine

The European Union's latest financial support plan for Ukraine, described by Christine Lagarde as being almost compliant with international law, seeks to use Russian assets immobilized in Europe. EU leaders face the challenge of using these assets legally while ensuring support for Ukraine without compromising the euro's reputation.

The European Union's latest proposal to financially support Ukraine is nearing compliance with international law, according to European Central Bank President Christine Lagarde, who addressed the issue on Wednesday.

For months, EU leaders have deliberated on utilizing immobilized Russian assets in Europe, totaling approximately 210 billion euros, to fund Ukraine. These talks aim to adhere to international law, which prohibits outright confiscation, and offer guarantees to Belgium, where most of these assets are held.

Lagarde, addressing a Financial Times event, emphasized the importance of maintaining legal standards: "The scheme is the closest I have seen to compliance with international law," she stated, reinforcing Europe's commitment to Ukraine. Despite not being directly involved, Lagarde raised concerns on the global implications for the euro if the legal boundaries are not respected.

(With inputs from agencies.)