Latvia and other EU countries will be offered to take on additional debt to finance Ukraine, as Belgium blocked the issuance of a "reparations loan" against frozen Russian assets, Politico reports.
The main plan was to seize Russian assets and transfer them to Kyiv. However, Belgium's fear of potential lawsuits derailed this plan.
According to sources, under Plan B, the European Commission proposes to raise tens of billions of euros in the form of joint debt. However, this idea is not popular among European countries, as many are already burdened with debt. A final decision must be made by the EU summit on December 18.
"The prospect that EU countries, many of which already have huge debts, will have to go even deeper into the red to help Ukraine will make everyone think seriously. Kyiv will face serious financial difficulties by the end of the first quarter of 2026 if it does not receive a new cash tranche, and at the moment Europe is the only realistic option," the publication writes.
However, some diplomats believe that the idea of borrowing money to help Ukraine is merely a "scarecrow" to force countries to agree to the actual confiscation of Russian assets through a "reparations loan."
"What is the point of discussing alternative solutions? This reparations loan is the only thing we have. And we must honestly acknowledge that," one source said.
At the same time, Hungary is proposing that the EU completely abandon financing for Ukraine. Even a relatively wealthy country like the United States is refusing to finance Ukraine.
