EU's Financial Pledge to Ukraine: A Balancing Act Amidst Legal Concerns

European Union leaders agree to support Ukraine's financial needs for two years but hesitate to use frozen Russian assets for funding due to Belgium's legal concerns. The lack of unanimous endorsement prompts European leaders to explore alternative options for financial assistance to bolster Ukraine against Russia's invasion.

In a recent summit, European Union leaders committed to addressing Ukraine's financial needs over the next two years. However, the proposal to use frozen Russian assets to fund a substantial loan faced resistance due to legal concerns voiced by Belgium, particularly involving the financial institution Euroclear.

Belgian Prime Minister Bart De Wever underscored the necessity for legal assurances and risk-sharing among EU countries before endorsing the plan, stressing the importance of transparency. Meanwhile, Ukrainian President Volodymyr Zelenskiy called for accelerated decisions, noting the critical impact on defense and EU progress.

Despite these discussions, no unanimous decision was reached as Belgium sought concrete legal statuses and financial contributions from EU members. Russia condemned the proposal as illegal property seizure, hinting at possible retaliation, leaving the EU searching for viable financial strategies.

(With inputs from agencies.)