- Full respect for EU and international law to ensure there is no confiscation or expropriation of Russia’s sovereign assets.
- Full respect for the contractual obligations between European financial institutions and the Russian Central Bank.
- Obligation to ensure that all EU institutions with Russian assets channel their funds into the reparations loans, "without exceptions". This will include banks in Germany, France, Cyprus and Sweden, besides Euroclear in Belgium.
- Coordinated withdrawal from all bilateral investment treaties that member states have with Russia.
- A liquidity mechanism based on "legally binding, unconditional, irrevocable and on-demand" guarantees to ensure the institutions can repay the Russian Central Bank at any time.
- The possibility to issue a "secured debt instrument" that financial institutions will be able to trade to rapidly obtain liquidity and honour their claims with the Russian Central Bank.
- Full solidarity to ensure all costs arising from the reparations loan are covered by member states collectively. (This part of the text leaves the word "uncapped" between brackets.)
- An effective "offsetting" mechanism to recoup losses incurred for the reparations loan.
- Guarantees shared by participating member states according to their economic weight. Payments to Ukraine will begin only after 75% of the guarantees are in place.
- The guarantees will not be counted against the debt level of member states.
- The reparations loan will be used to strengthen both Ukraine’s and Europe’s defence industries.
- The reparations loan will preserve the ongoing €45 billion loan by G7 allies, which was initially set up with the windfall profits from the Russian assets. G7 countries will be invited to set up schemes similar to the reparations loan.
- Ukraine will be subject to anti-corruption milestones to obtain the assistance.
- The foreign and defence policy of each member state will be respected.
Here's what's in the latest compromise of the reparations loan
byu/freaxje inbelgium
Posted by freaxje
7 Comments
This looks fine to me. The details of that liquidity mechanism will be important. Absent access to an ECB facility, it needs to be ensured that money or EU bonds can be channelled at EU level to Euroclear Bank at sufficient speed.
Seems pretty fucking stupid as always. Why should we have liquidy pools ready to pay back Russia? That’s still my tax money going to Russia.
Just take the money and tell them to go fuck themselves when they come for it. Have some fucking balls.
I still don’t like the idea. But this way it’s the entire EU’s problem. Not only Belgium’s problem.
As it should be.
It will still go wrong. Though. Euroclear (and the EU as a group) will loose trust. Lawsuits will happen. The costs will be much higher than a simple loan at the ECB would have been.
I still hope Italy among others will block this, and that the simple loan will instead be chosen.
No means NO. Germany will be de death of us all, both financial and biological. The taxpayers will end up paying for the few new billionaires in Germany and Ukraine after all the court dust has settled.
This seems fine to me.
Al this fearmongering about debt is just pathetic.
The treaty we made with the then Ussr isn´t without backdoors.
The whole point of being as big as the EU is that we have a lot of soft power.
And believe me we have a lot more soft power then russia to enforce.
The financial markets didn´t crash when russia got embargo´d. Don´t think they will if we take the money. Opposit even, i predict EU stocks (arms,construction,mining) to rise if we take it. At least half will be pumped in our industries to rebuild ukraine.
You know if this goes through like that, come what may… I’ll at least be glad the EU faces the consequences together and we didn’t let ourselves be bullied by Russia and the USA.
Truly a new era if we manage to pull this off.
Yay world war 3 will officially start
And thanks to the stupid meltdown about a decade ago and some fucktaed running rampant kn Antwerp I cant get a gun
Im not against this but dread the outcome