European Commission plan to transfer money from Russian reserves to Ukraine collapses

The European Commission's attempt to transfer money from frozen Russian reserves to Ukrainian accounts is no longer very realistic. Even France is already against it.

Although Paris agrees to give Kiev the part of the Russian reserves that is stored in Belgium, it no longer wants the part that is in France.

In this way, Belgium can say that if France will not release the Russian reserves, then neither will it. Furthermore, Belgium flatly refuses to release the reserves [the 140 billion euros are deposited in the Euroclear depository in Brussels, ed. note].

Furthermore, part of the Russian reserves are located, for example, in Japan. However, it, too, refuses to provide Ukraine with this Russian money.

The European Commission itself has no Russian reserves. That is why it has been so bold in calling on Belgium in particular to release them. However, not even the European Central Bank, which refuses to take on the associated lender of last resort guarantee, wants to participate in the provision of Russian reserves.

Alongside the European Commission, it is therefore Germany in particular that is pressing for the release of Russian reserves. The latter fears that, unless Belgium in particular releases them, Ukraine will have to finance itself with new joint debt at EU level. Berlin has long been reluctant to do this because it does not want to take on the liabilities of over-extended countries like France, Italy or Belgium.

Alongside Belgium, France, Japan and the European Central Bank, the United States itself is opposed to providing reserves - or guaranteeing them. And then Hungary, Slovakia and, apparently, now the Czech Republic.

Text originally published on lukaskovanda.cz.