( KYIV, UKRAINE ) – The International Monetary Fund has welcomed ongoing discussions in Europe regarding the use of frozen Russian assets to support Ukraine, while emphasising that any actions must comply with international law and avoid disrupting the global financial system.
IMF spokesperson Julie Kozack told reporters on December 4 that the Fund supports active European talks aimed at restoring Ukraine’s debt sustainability. She noted that options under consideration include using cash balances held in Belgium’s financial depository Euroclear, which are generated by immobilised Russian assets, while ensuring Russia’s underlying claims are preserved.
Kozack said, “We welcome the active discussions in Europe regarding support for Ukraine and the goal of doing so in a way that is consistent with restoring Ukraine’s debt sustainability. We are closely following these discussions, including options that involve Euroclear’s cash balances.”
She added that IMF staff and management have consistently advised that any actions related to immobilised Russian assets must comply with international and domestic law and avoid undermining the international monetary system. “We are confident that European policymakers appreciate these important considerations,” she added.
Belgium has expressed concern that Russia may retaliate both domestically and internationally. The Belgian government has requested strong financial guarantees from other EU capitals before considering the European Commission’s proposal to use frozen Russian assets in Euroclear to provide a reparation loan to finance Ukraine.
German Chancellor Friedrich Merz cancelled a scheduled trip to Oslo and instead arrived in Brussels on December 5 for a private dinner with European Commission leadership to persuade Belgium to support a proposed reparation loan for Ukraine worth 165 billion euros, approximately $180 billion at current exchange rates.
EU leaders are expected to discuss the initiative in Brussels on December 18. If an agreement is not reached, member states may need to use taxpayer funds to provide financial support for Ukraine.
| Issue | Detail |
|---|---|
| Asset Source | Euroclear cash balances from immobilised Russian assets |
| Proposed Support | Reparation loan for Ukraine worth 165 billion euros ($180 billion) |
| Belgian Position | Requires ironclad guarantees against Russian retaliation |
| IMF Guidance | Compliance with law, protection of global monetary system |
| EU Deadline | Discussion scheduled for 18 December |
