Overview
- EU finance ministers will debate options on November 13, with leaders expected to consider a final approach at the December 18–19 summit.
- The European Commission’s preferred plan is a reparations loan that would swap frozen Russian cash at Euroclear for zero‑coupon AAA bonds, with repayment only if Russia pays reparations.
- Belgium has not granted consent and is seeking guarantees, a pivotal hurdle given that most frozen Russian state assets in Europe sit in cash at Euroclear in Brussels.
- Slovak Prime Minister Robert Fico says his country will not back schemes that fund military costs from frozen assets, raising veto and legal risks tied to sanctions reauthorization.
- As fallback measures, the Commission is preparing conventional borrowing and bilateral loans, exploring external guarantees including discussions involving Norway, and urging use of the €150 billion SAFE defense procurement initiative.