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| Internal disagreement over funding for Ukraine, EU 'turns gear' to target frozen Russian assets? (Source: Wikipedia) |
The European Commission (EC) is ready to put forward proposals on the use of frozen Russian assets for the benefit of Ukraine.
Perhaps that is why, in addition to the multi-year and very expensive funding plan, the EC continues to submit proposals for the use of frozen Russian assets. Although the EU has previously stated that it has no legal basis for the complete confiscation of frozen Russian assets, but will instead focus on obtaining temporary use of those assets.
However, the issue of frozen Russian assets is once again on the EU's agenda. On August 29, EC Spokesperson Christian Wiegand spoke about this to the media. "We are ready to put forward a legal proposal taking into account the discussions with the Member States," Vigard said.
EU leaders discussed the issue at the latest European Council meeting in late June, EC spokesman Wiegand said. “We are working with the Spanish president, who holds the EU presidency from 3 July, to find a step-by-step, sensible approach and we are actively moving forward with the discussions,” he said.
Mr Wiegand revealed that the EC is ready to put forward detailed proposals and start discussions with member states. More specific solutions have been considered and are being worked on with partners from the G7.
“It is very important for us to coordinate this issue internationally,” the spokesperson added.
However, in a recent development, the Financial Times on August 29, citing sources, said that EU financial aid to Ukraine is being delayed due to fierce disagreements among member states. Concerns about national budgets and rising costs in Brussels have threatened the flow of financial support to Kiev.
Sources confirmed that it was Brussels' request for additional funding of 86 billion euros (about 93 billion USD) to support Ukraine over four years that "divided" member states and led to discussions about reducing the amount and extending the approval period.
In the last days of August, after the summer break, EU foreign and defense ministers continued consultations on this issue, with financial support for Ukraine at the top of the agenda.
But the funding talks were complicated by the fact that the EC had combined financial assistance to Ukraine with the need for additional EU funding.
Many member states, while supporting additional financial support for Ukraine, have shown their disapproval of paying more money into the EU's common budget, citing the issue of internal budget management within the bloc.
The FT notes that Germany and the Netherlands are leading the charge, arguing that the “belt-tightening” of national budgets due to rising interest rates and new wage demands should also be reflected in Brussels.
“This is not the right time for Brussels to ask for more contributions, when member governments are also facing their own difficulties in making financial decisions,” said a senior EU diplomat.
Quite contradictory practical issues are now putting the EU in its most intense negotiations before the end of the year.
At a press conference after the meeting of foreign ministers on August 31, EU High Representative for Foreign Affairs and Security Policy Josep Borrell also affirmed that the EU supports Ukraine "today, tomorrow and always" in a "predictable and sustainable" way, but mainly on financial issues.
The Spanish politician also mentioned a proposal to the EC to establish a new Ukraine Support Fund, which would run from 2024 to 2027, and expressed hope that the agency would “reach an agreement by the end of the year. The fund would be around €5 billion a year, with a total commitment of €20 billion over the next four years,” Borrell said.
But while Mr Borrell speaks as if the EU is capable of using all its economic, political and military power to support Ukraine, Hungary is sceptical about the bloc’s policies. Speaking at a forum in Slovenia earlier this week, Hungarian Foreign Minister Peter Szijjarto described the EU as being weakened in security, economy and energy terms due to the conflict in Ukraine.
In fact, the EU also agreed to provide Ukraine with €18 billion ($19 billion) in macro-financial assistance in December 2022. Ukraine and the EU signed a Memorandum of Understanding on January 16. Earlier, media reports said the EU would cover nearly half of Ukraine’s financial needs until 2027.
On August 22, the EU disbursed 1.5 billion euros ($1.6 billion) in macro-financial assistance to Ukraine out of an 18 billion euro package.
Recently, at a press conference in Paris with his French counterpart Catherine Colonna, Ukrainian Foreign Minister Dmytro Kuleba said that Kiev is not afraid of any decline in Western aid, he also denied information that a US poll showed declining public support and critical comments from some American conservatives.
As Ukraine's counteroffensive progresses slowly, a CNN poll shows that more than half of Americans oppose additional financial assistance to Ukraine.
“We do not feel any decline in support from the (US) Congress or from the European Parliament,” Dmytro Kuleba told the media.
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