The war is still raging in Ukraine, but the EU is apparently already thinking about how the country’s reconstruction can be financed. Among other things, confiscated assets of Russian oligarchs could be used.
Russia continues its war of aggression against Ukraine. Bombs are still falling daily on cities that have practically been completely razed to the ground. In Brussels, however, people are apparently already discussing how the reconstruction of Ukraine should be financed, the British “Guardian” reports. Part of the reparations could therefore be paid for by confiscated assets from Russian oligarchs.
Ukraine: Seized oligarch assets could finance reconstruction
According to the report, the EU Commission is planning extensive financial support for Ukraine. According to estimates, the reconstruction of the infrastructure alone will cost around 100 billion euros. In order to pay the huge sums, a three-point plan should take effect. First, Ukraine should take out loans. These would be supported by grants from individual EU member states, which do not have to be repaid in the long term. These grants are intended to go towards rebuilding destroyed homes, schools, roads, railways, airports and bridges.
As a third point, the EU proposes examining the possibility of using assets belonging to sanctioned Russians and Belarusians. European Council President Charles Michel told Ukraine’s Interfax news agency earlier this month: “I firmly believe that it is extremely important not only to freeze assets but also to confiscate them in order to use them for the country’s reconstruction to provide.”
Legislators in the US and UK are even going a step further and are proposing to confiscate Russian property to ensure reconstruction and care for refugees in the country.
Brussels officials: EU to borrow as a community on international financial markets
According to the leaked plan, another notable proposal comes from unnamed officials in Brussels: They apparently demand that the EU should borrow on the international financial markets as a bloc for Kyiv. Such a process would only be the second case in history in which the EU financed loans collectively. This happened for the first time when the €750 billion Covid stimulus plan was passed in 2020.
According to the Guardian, it has already seen the paper and assumes that the EU Commission will officially announce its plans on Wednesday once further discussions have been completed. So far, no exact figures have been given in the document, but the EU assumes that the financial requirements for reconstruction will be “probably considerable” and will probably last for more than a decade.
Ukraine will need “significant financial support in the short term” to maintain basic services, provide humanitarian aid and repair critical infrastructure, the document said. To meet this urgent need, the Commission is proposing loans at low interest rates with long repayment periods.
Reconstruction is to be coordinated by Brussels and Kyiv
The USA could also participate in the reparations. President Joe Biden last month proposed a $33 billion aid program for Ukraine. $20 billion of that should flow into defense spending alone.
The EU has provided €4.1 billion in emergency loans and humanitarian aid since the Russian invasion began, and has agreed to fund €1.5 billion worth of arms and other non-lethal military assistance. This does not include the funds made available by the individual EU member states.
According to the document, the EU’s reconstruction plan is to be managed jointly by Brussels and Kyiv. Although Ukraine’s hopes for EU membership are not specifically mentioned, the plan aims to bring the candidate country into line with EU standards, including on the rule of law, anti-corruption, energy and climate issues.
Quelle: “The Guardian”