Connect with us

World

EU weighs Plan B for Ukraine as Belgium raises bar on reparations loan

Published

on

EU weighs Plan B for Ukraine as Belgium raises bar on reparations loan

European Union leaders are coming to terms with the idea that an emergency funding solution to keep the Ukrainian economy afloat will have to be deployed after Belgium raised the bar higher to unlock a reparations loan that would bolster Kyiv’s finances.

The solution could see the EU raise money on the markets to deliver a non-repayable grant to Kyiv that would cover its most immediate financial and military needs in 2026.

This, in turn, would give leaders more time to break the deadlock over the proposed loan, a bold attempt to channel the immobilised assets of the Russian Central Bank to Ukraine.

The bulk of the assets, around €185 billion, is kept at Euroclear, a central securities depository in Brussels. This makes Belgium the cardinal vote in the debate.

Initially, EU leaders were expected to be able to assuage the Belgian reservations and sign up to the unprecedented project during their next meeting on 18 December.

Advertisement

In a new twist in the long-running saga, Belgian Prime Minister Bart De Wever penned a scathing letter to Ursula von der Leyen, blasting the reparations loan as “fundamentally wrong” and ridden with legal and financial pitfalls.

“Why would we thus venture into uncharted legal and financial waters with all possible consequences, if this can be avoided?” De Wever tells the president of the European Commission in the letter. “I will never commit Belgium to sustain on its own the risks and exposures that would arise from the option of a reparations loan.”

Upping the ante, De Wever demands “legally binding, unconditional, irrevocable, on-demand, joint and several guarantees” to cover the €185 billion of the assets and all the potential fallout, such as arbitration costs, interests, investment opportunity loss and even the “quantification of financial impact to the Central Bank of Russia’s credit”.

He also asks for total coverage for Euroclear’s holdings in “Russia-friendly jurisdictions”, which he said could be subject to retaliatory measures from the Kremlin.

“Some may hold the belief that this is only a theoretical exposure. l am making the point that this danger is, to the contrary, real and likely to happen,” De Wever writes.

Advertisement

By raising the bar so high for the guarantees, which are a crucial element to unlock the reparations loans, De Wever makes its approval exponentially more difficult.

It is unlikely that the other leaders will be able to show up at the summit in December with multi-billion guarantees that rely for the most part on a hypothetical calculus. For some countries, such a complex structure would require the blessing of their parliament.

The hurdles are weighing heavily in the minds of EU officials and diplomats as they rush to break the deadlock before Ukraine runs out of foreign aid. The country expects a fresh injection of assistance in the second quarter of 2026 at the latest.

Adding to the pressure is an $8.1 billion programme that the International Monetary Fund (IMF) is meant to grant Ukraine. For the IMF to make a final decision, it will need firm commitments by European allies to ensure Kyiv’s macro-economic stability.

The mounting urgency has drastically raised the odds for a bridge solution to plug the gap. The interim financing could be backed by either national guarantees or the EU budget, which currently forbids borrowing for a country outside the bloc.

Advertisement

Tweaking the budget’s rules would need unanimity, a tall order given Hungary’s adamant opposition to aiding Kyiv in any capacity. The same obstacle would remain if leaders chose joint debt as the long-term arrangement to support Ukraine.

The Trump factor

In his letter, De Wever goes beyond law and economics and dives headfirst into politics.

The Belgian leader warns that pushing the reparations loan at this particular stage could imperil the White House’s efforts to secure a peace deal to end Russia’s war.

“Hastily moving forward on the proposed reparations loan scheme would have, as collateral damage, that we, as the EU, are effectively preventing reaching an eventual peace deal,” De Wever tells von der Leyen.

“We can hardly engage the Russian sovereign assets for multiple purposes at the same time. Either they are immobilised for the purpose of financing reconstruction of Ukraine, or they are spent now on financing war efforts or Ukraine’s core budget.”

Advertisement

De Wever argues that it is “very probable” that Russia will not be declared the “losing party” in the conflict and therefore be entitled to recover its sovereign property currently under sanctions. If this happens, he adds, the reparations loan will fall apart and European taxpayers will have to foot the bill themselves.

This section in the letter stands in stark contrast with the position advocated by other leaders, who see the Russian assets as the bloc’s most powerful leverage.

“We must quickly reach an appropriate agreement by the EU leaders’ summit in December at the latest to strengthen our negotiating position and send another signal of solidarity and support to Ukraine,” German Chancellor Friedrich Merz said on Thursday.

Von der Leyen has also framed her proposal under a moral lens to “make Russia pay”.

“To be very clear – I cannot see any scenario in which the European taxpayers alone will pay the bill. This is also not acceptable,” she said this week.

Advertisement

The internal disagreements come at a precarious time for Europeans, who were caught off guard by a 28-point peace plan secretly drafted by US and Russian officials and are now scrambling to close ranks and project political unity.

The original draft pitched a highly controversial model that would use the Russian assets for Washington’s and Moscow’s commercial benefit. The provision is believed to have been removed after high-level talks in Geneva between the US and Ukraine.

Still, the text highlighted the value of the Russian assets. For some, it confirmed the need to approve the reparations loans. For others, it prompted second thoughts.

Hours before De Wever sent his letter to von der Leyen, Russian President Vladimir Putin warned that touching the funds would amount to the “theft of someone else’s property”.

(Under the proposal, Moscow would be allowed to recover the immobilised assets if it agreed to compensate Ukraine for the damages caused by the war.)

Advertisement

“The government of the Russian Federation, by my assignment, develops a package of reciprocal measures in case this happens,” Putin said during a briefing.

In awkward timing for Kyiv, the debate on the reparations loan coincides with a spiralling corruption scandal that precipitated the resignation of Andriy Yermak, President Volodymyr Zelensky’s powerful chief of staff and main negotiator in the peace process.

A diplomat told Euronews that President Zelensky will “have to straighten out the situation as it looks really bad”, and the optics make it significantly more challenging for Europe to sign off on another round of funding.

Still, diplomats insist that aid for Ukraine, a country on the front line of Russian aggression, should not be linked to the scandal.

For its part, the European Commission, which has been criticised for not taking De Wever’s initial concerns seriously, is putting on a brave face.

Advertisement

“These are uncharted waters, so it’s legitimate to ask questions, to share concerns,” said Paula Pinho, the Commission’s chief spokesperson. “We are really doing our utmost to address those concerns in a satisfactory manner so that everybody can feel confident and comfortable with any solution that is put forward eventually.”

Asked if the Commission was ready to override Belgium and push the reparations loan with a qualified majority, Pinho said: “We’re not there yet.”

World

Senior Iranian official tells Reuters US-Iran talks unlikely | The Jerusalem Post

Published

on

Senior Iranian official tells Reuters US-Iran talks unlikely | The Jerusalem Post

The official additionally stated that Iran has reviewed a US 15-point proposal for ending the ongoing war in the Middle East and deemed it “one-sided and unfair,” serving only US and Israeli interests, and lacking “the minimum requirements for success.”

“In brief, the proposal suggests that Iran would relinquish its ability to defend itself in exchange for a vague plan to lift sanctions,” he told Reuters.

No arrangement for negotiations has been established yet, the official continued, adding that Turkey and Pakistan are attempting to “establish common ground between Iran and the United States and reduce differences.”

The proposal, which was conveyed to Iran through Pakistan, “was reviewed in detail on Wednesday night by senior Iranian officials and the representative of Iran’s Supreme Leader,” the official said.

On Wednesday, Iranian regime-tied Press TV cited an Iranian official as stating that Tehran considered the conditions of the proposal excessive and would only agree to end the war at a time of its choosing if its conditions are met.

Advertisement

According to an N12 News report on Tuesday, citing three sources familiar with the details of the potential plan, the US was considering declaring a month-long ceasefire during which negotiations on the agreement would take place.

The 15-point plan reportedly contained terms including the dismantling of all existing Iranian nuclear capabilities, a commitment that Iran will discontinue efforts to obtain nuclear weapons, and a requirement that any already enriched uranium be moved out of Iran.

Continue Reading

World

Zelenskyy claims US tied Ukraine security guarantees to giving up Donbas, White House denies

Published

on

Zelenskyy claims US tied Ukraine security guarantees to giving up Donbas, White House denies

NEWYou can now listen to Fox News articles!

U.S. security guarantees for Ukraine are being tied to Kyiv ceding the eastern Donbas region to Russia as part of a potential peace deal, Ukrainian President Volodymyr Zelenskyy told Reuters in an interview published Thursday.

“The Americans are prepared to finalize these guarantees at a high level once Ukraine is ready to withdraw from Donbas,” Zelenskyy said, describing a proposal he warned could undermine both Ukraine’s defenses and broader European security.

But a U.S. official, speaking on background, told Fox News Digital the claim is false.

Zelenskyy’s comments point to growing pressure from President Donald Trump to reach a swift end to the war, now in its fourth year following Russia’s 2022 invasion. 

Advertisement

ZELENSKYY SAYS PEACE DEAL IS CLOSE AFTER TRUMP MEETING BUT TERRITORY REMAINS STICKING POINT

Zelenskyy suggested the administration’s approach is influenced in part by competing global crises, including the ongoing conflict involving Iran.

U.S. security guarantees for Ukraine are being tied to Kyiv ceding the eastern Donbas region to Russia as part of a potential peace deal, Ukrainian President Volodymyr Zelenskyy said.  (Pavlo Bahmut/Ukrinform/NurPhoto via Getty Images)

“The Middle East definitely has an impact on President Trump,” Zelenskyy said. “President Trump, unfortunately, in my opinion, still chooses a strategy of putting more pressure on the Ukrainian side.”

Talks between the United States, Russia and Ukraine have taken place in Abu Dhabi and Geneva in 2026, but key issues remain unresolved, including how Ukraine’s future security would be guaranteed and who would fund its long-term defense.

Advertisement

Zelenskyy warned that abandoning Donbas would hand Russia heavily fortified Ukrainian defensive lines, weakening Kyiv’s position and potentially enabling future aggression.

“I would very much like the American side to understand that the eastern part of our country is part of our security guarantees,” he said.

ZELENSKYY CLAIMS TRUMP SAID US WILL CONSIDER GIVING UKRAINE DECADES OF SECURITY GUARANTEES

Ukrainian President Volodymyr Zelenskyy warned that abandoning Donbas would hand Russia heavily fortified Ukrainian defensive lines.  (Joe Raedle/Getty Images)

Russian President Vladimir Putin has long insisted that full control of Donbas is central to Moscow’s war aims. While Russian forces have made gains, analysts cited by Reuters say progress has been slow, and capturing the remaining territory could take significant time and manpower.

Advertisement

Zelenskyy also warned that Moscow is betting Washington will lose interest if negotiations stall. 

“Russia is counting on the fact that the United States will not have the strength or patience to bring this to an end,” he said.

Despite tensions over negotiations, Zelenskyy thanked the Trump administration for continuing deliveries of Patriot missile defense systems, which Ukraine relies on to intercept Russian ballistic missiles. 

“Deliveries to us were not stopped. I’m very grateful to President Trump, and to his team,” he said, while adding that supplies remain insufficient.

In parallel with the diplomatic push, Zelenskyy signaled a broader strategy to expand Ukraine’s role as a security provider, particularly in the Middle East, where countries are seeking solutions to large-scale drone and missile threats.

Advertisement

UKRAINE PEACE TALKS PRODUCTIVE AS EX-GOVERNMENT OFFICIAL SAYS COUNTRY RETHINKING ‘UNCOMPROMISING’ STANCE

A cemetery worker prepares a burial vault at military cemetery outside of the city of Dnipro, Ukraine, May 25, 2023. (Seth Herald/Anadolu Agency via Getty Images)

“The United States has reached out to us regarding their bases in Middle Eastern countries,” Zelenskyy wrote on X Thursday, adding that Saudi Arabia, Qatar, the United Arab Emirates, Bahrain, Jordan and Kuwait have also approached Ukraine.

He said Ukrainian teams are already on the ground sharing operational experience, particularly in countering mass drone attacks. 

“No matter how many Patriots, THAADs, or other air defense systems are in the Middle East, that alone is not enough,” he wrote. “There are modern interceptors designed to counter heavy drone strikes.”

Advertisement

Zelenskyy also indicated Ukraine is exploring defense trade arrangements, offering to sell surplus systems and expertise while seeking access to air defense missiles it currently lacks. 

“Funding is the scarcest resource today,” he wrote, noting Ukraine’s defense industry is operating at roughly half capacity and needs additional financing to scale drone production.

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

Ukraine is exploring defense trade arrangements, the country’s president said.  (Iryna Rybakova/Press Service of the 93rd Kholodnyi Yar Separate Mechanized Brigade of the Ukrainian Armed Forces/Reuters)

In separate posts tied to an address at a Joint Expeditionary Force summit, Zelenskyy emphasized that Ukraine’s battlefield experience could play a broader role in European and global security.

Advertisement

“We have this experience. … Let’s bring all of this together even more,” he wrote, calling for deeper cooperation with European partners and warning that the continent must build its own capacity to produce air defense systems rather than rely on external suppliers.

Reuters contributed to this story.

Advertisement
Continue Reading

World

Photos: More than one million displaced by Israel’s evacuations in Lebanon

Published

on

Photos: More than one million displaced by Israel’s evacuations in Lebanon

The Israeli military has issued expanded leave-or-die threats for Lebanese residents, mandating that all individuals south of the Zahrani River relocate north immediately. An Israeli spokesperson warned that those who fail to comply “may endanger their lives due to Israeli military activity.”

This directive represents a significant escalation in Israel’s forced evacuation threats targeting alleged Hezbollah positions. The forced evacuation zone now extends from the Litani River to areas beyond the Zahrani River, approximately 40 kilometres (25 miles) north of the Israeli border. According to the Norwegian Refugee Council, these orders cover more than 1,470 square kilometres (568sq miles) – about 14 percent of Lebanon’s territory – and affect more than 100 towns and villages.

At the same time, Israeli ground forces are bolstering their presence in southern Lebanon, with officials stating the goal is to establish a “buffer zone.”

The humanitarian impact has been devastating. Within just two weeks, more than 18 percent of Lebanon’s population – more than one million people – has been displaced. Data from the International Organization for Migration indicates that 1,049,328 individuals have been registered as displaced, with 132,742 residing in overcrowded collective shelters. As shelter capacities are overwhelmed, many families have no choice but to sleep on streets, in vehicles, or in public spaces.

Advertisement

The crisis has also prompted a significant exodus from Lebanon. In the past two weeks, more than 250,000 people have fled the country, marking a 40 percent increase since late February. By March 17, more than 125,000 individuals – nearly half of them children – had crossed into Syria. While the majority are Syrian nationals, approximately 7,000 Lebanese citizens have also fled.

Further complicating the threatened civilians’ efforts to flee, Israel has destroyed bridges across the Litani River, cutting off vital infrastructure that connects southern Lebanon to the rest of the country.

Continue Reading
Advertisement

Trending