The letter is dated August 27 and addressed to the head of the European Commission’s foreign policy arm, Kaja Kallas, and Ireland’s foreign minister, Helen McEntee. It was sent ahead of an informal meeting of foreign ministers in County Wicklow in Ireland; copies were received by European Commissioner for Economy Valdis Dombrovskis and Commissioner for Enlargement Marta Kos.
The signatories write that Ukraine needs additional financial support in both the short and long term. They believe that now is the time to return to the issue of further use of Russia’s frozen state assets in Ukraine’s interests, and that European Commission experts should work out new options in which the risk would be shared among all EU countries.
The letter comes amid statements by Ukrainian President Volodymyr Zelensky that the country’s defense budget is already short by €23 billion. The authors of the letter also point out that Zelensky wants to get the money sooner, although it will be difficult to persuade all EU capitals to release funds before reforms are completed.
In December, EU leaders failed to agree on a plan to use €210 billion in frozen Russian state assets, most of which are held in the Brussels-based depository Euroclear, to secure a large loan for Kyiv. Belgium opposed the plan, demanding unlimited guarantees from the other EU countries in case of possible legal and financial claims from Moscow.
Later, EU leaders decided to raise money on the markets and create a €90 billion loan for Ukraine, which is planned to be disbursed over the next 18 months and only after reforms that the Ukrainian government must carry out. In recent weeks, the Belgian government has said it is ready to return to the discussion, but it maintains its demand for financial guarantees against a possible reaction from Moscow; this issue is drawing attention in The Hague, Madrid, Stockholm and Warsaw.
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