EU states may borrow billions of euros to provide aid to Ukraine - media

WASHINGTON. Oct 27 (Interfax) - The European Commission will propose that the EU states to jointly borrow tens of billions of euros to provide aid to Ukraine in order to avoid using Russia's immobilized assets for these purposes, Politico reported on Monday, citing sources.

"EU countries may be called upon to raise tens of billions of euros in joint debt as part of a 'Plan B' to keep Ukraine afloat after Belgium shot down plans to use Russia's frozen assets as a financial lifeline for Kiev," the media outlet quoted three European diplomats as saying.

This plan is expected to be included in a document that the European Commission will present to the EU states in the coming weeks. The European Commission will also present an updated plan for using Russia's immobilized assets and a third option - not to provide financial assistance to Ukraine. Diplomats believe only Hungary may support the third option.

Several European leaders suggested taking a joint loan at the EU summit held last week, after which it became clear that Belgium is still concerned about the possible consequences of using the Russian assets, Politico reported.

Many European countries are already in debt and therefore would still prefer using Russia's immobilized assets, Politico reported.

As reported, the European Commission is considering the possible use of about 170 billion euros of immobilized Russian assets, currently held at the Euroclear financial depository in Brussels. Presumably, 140 billion euros might be disbursed for "a reparations loan" to Ukraine.

Belgian Prime Minister Bart De Wever has expressed concern about such plans. He said that the European Commission's plans for using the immobilized Russian assets were similar to confiscation and demanded that the EU gives more guarantees to Belgium, considering the possible legal consequences of the move.

European Commission President Ursula von der Leyen said later on that the EU heads of state had determined aspects to be worked on for implementing the initiative at the summit in Brussels.