The central bank has concluded that the European Commission’s plan falls outside its mandate, the newspaper has reported
The European Central Bank has refused to support a proposed €140 billion payout to Ukraine backed by frozen Russian assets held at Belgium’s Euroclear, the Financial Times reported on Tuesday, citing officials familiar with the discussions.
The ECB determined that the European Commission’s scheme falls outside its mandate, the newspaper reported.
The EU has spent months trying to tap frozen Russian central bank reserves to back a €140 billion ($160 billion) loan for Kiev. Belgium, where around $200 billion of the assets is held at the privately owned Euroclear clearing house, has repeatedly warned of potential litigation as well as financial risks if the EU goes through with the scheme.
Under the European Commission’s plan, EU nations’ governments would provide state guarantees to share the repayment risk on the loan for Ukraine.
Commission officials, however, have warned that member states might be unable to mobilize cash quickly in an emergency, risking market strains.
EU officials reportedly asked the ECB whether it could act as a lender of last resort to Euroclear Bank, the Belgian depository’s lending arm, to prevent a liquidity crunch. ECB officials told the commission this was not possible, the FT reported, citing sources familiar with the talks.
December 02, 2025 at 01:26PM
RT