This has gotta be cheaper than the EU fighting Russia directly.
45
Slappyfist4 days ago
+25
Especially as it's a loan which is backed by the frozen Russian assets, so it's not like it's actually needing paid for up front.
25
Prestigious_Health_24 days ago
+9
It's raised trough capital markets, not Russian assets. Using foreign assets as a collateral for a loan is legally dubious. EU didn't agree on it because Belgium demanded full guarantees to share the consequences among EU members.
Instead they vaguely suggested the frozen assets might be used in the future, no details on how. They'll probably float the idea of demanding Russian reparations in return for their assets. Which is never going to happen if they refuse to negotiate with Russia.
9
green_flash4 days ago
+3
It's not backed by frozen Russian assets. They decided against that. It's funded through joint debt: https://www.euronews.com/my-europe/2026/02/04/eu-countries-seal-deal-on-90-billion-loan-for-ukraine-funded-through-joint-debt
3
IndividualSkill34324 days ago
+1
>This has gotta be cheaper than the EU fighting Russia directly.
This is why pro Putin politicians have been working so hard against it. Orban was covering for a few more. Part of it is money but its mostly an ideological kinship with his authoritarianism vs the EUs legalistic world.
1
Starter-for-Ten4 days ago
Absolutely, they should be giving Ukraine everything they need and saying thank you just to defeat Putin.
0
Aelig_4 days ago
If this loan works like a loan from a private bank it's free to emit so yeah, quite a bit cheaper.
0
Asleep-Waltz26814 days ago
-15
It's expensive in the long run since you breach contracts and lose trust in the internaitonal sphere. You also have to expect that Russia will have the right to disown European companies and seize assets and they will be able to enfore this through international partners e.g. China. Lastly, Getting loans in EU will be more expensive simply due to the fact that the political environment proved to be untrustworthy and if you're a company your assets can be stolen for any arbitrary reason. Companies will therefore avoid Europe (also since energy is expensive af) and go somewhere safer. Loeaners will ask for a higher premium due to higher risk.
Overall, it's just a very reckless move to do.
-15
Prestigious_Health_24 days ago
+6
They didn't use frozen assets to raise the loan. That was the initial plan but Belgium didn't want to be on the hook for 200 billion €. The loan is financed trough debt raised on capital markets.
6
Asleep-Waltz26814 days ago
-9
I see. That's certainly much better but the best solution would still be to start serious negotiations and get a peace treaty.
-9
Halinn4 days ago
+5
Ukraine have been interested in serious negotiations for a while, it's Russia who has demands which are nonstarters.
5
Asleep-Waltz26814 days ago
-1
Please provide a memorandum of a serious negotiation attempt after Istanbul.
-1
Prestigious_Health_24 days ago
-8
100%. They pay an enormous price to keep Ukraine afloat but refuse to turn that into some kind of leverage. EU voluntarily hands their seat at the negotiation table over to Trump, because suggesting talks with Russia is taboo. We'll be complaining that Trump threw Ukraine under the bus even though we could have bargained a better deal.
-8
HarEr895 days ago
+24
Good luck.
24
Amonfire17765 days ago
+15
No Orban to block it...
15
freshmeat20205 days ago
+10
He's still in power for a few weeks I believe
10
Slappyfist4 days ago
+11
He's already made noises about not blocking it, because Ukraine stated they are willing to turn the oil back on.
Of course Ukraine can do that now as a non pro-Russian politician is coming in, so it's more of a graceful out for Orban.
11
Zuropia5 days ago
+6
Is it expected to pass? Fico?
6
Shjfty5 days ago
+11
I think Fico said he won’t vote no on the monetary package so it should be good to go
11
Crypt33x4 days ago
+3
UK also ready to approve their 25b frozen? Would be nice.
3
green_flash4 days ago
+2
The EU will not use any frozen Russian assets, so I doubt the UK will.
2
Crypt33x4 days ago
+1
The 90b loan is basically another way to pay the frozen assets or not? The frozen assets will be used to pay for the loan at the end of the war as reperation. Meanwhile we use the interest to pay the loan.
1
green_flash4 days ago
+1
That depends on how the war ends which is very hard to predict because there are so many variables.
1
Madixaphlopin4 days ago
It's been decided how this war ends and "murica is not part of the solution. It would tske an hr explaining geopolitics but i am sure you can meditate on this ✌️
0
Madixaphlopin4 days ago
+1
Logistics aside.. Yes.
1
Madixaphlopin4 days ago
Because?
Don't forget, the despote "Orban" is out. Now it's just Greece and Turkey..
Delicious
0
eternalgrad4 days ago
+2
Using frozen assets opens them up to being sued later for the appropriation, as well as being seen as not a safe country for investment. That’s why they appropriate the interests (“profits”) instead of the principal.
2
AnothrRandomRedditor4 days ago
+1
Good let that be a lesson to countries looking to invade sovereign states.
1
Madixaphlopin4 days ago
Commentors here don't seem to have a finger on the pulse of EU politics.
Keep speculating 😄
0
Ultra_Metal5 days ago
+4
Another sign that Russia will lose the war.
4
[deleted]5 days ago
-7
[deleted]
-7
OutlandishnessFew4244 days ago
+1
Keep that same energy if you’re ever the victim of a crime.
34 Comments