Malta, along with Belgium, Bulgaria, and Italy, is urging the EU to consider alternative financing options for Ukraine instead of using Russia’s frozen assets. The EU has frozen around €210 billion of Russian assets, and the plan is to use these assets to secure a loan for Ukraine. However, Malta and other countries are concerned about the legal and financial risks associated with this plan.
The EU’s proposal involves using the frozen Russian assets as collateral for a loan to Ukraine, which would be repaid only when Russia pays war damages. But Malta and other countries are pushing for alternative mechanisms that comply with EU legislation and international law, minimizing risks and ensuring predictable parameters.
The EU leaders are set to discuss this plan at their summit on December 18, with some countries expressing concerns about potential lawsuits from Russia and the impact on European financial institutions like Euroclear.
