EU deliberates fresh strategies to support Ukraine
The European Union (EU) held informal talks in Copenhagen over the weekend, focusing on brainstorming ideas for the bloc's continued support for Ukraine amidst the ongoing conflict with Russia. One of the key topics under discussion was the fate of approximately €200 billion ($233 billion) in Russian central bank assets frozen in the EU in 2022.
The debate on what to do with these assets has been heated, with some countries, including the Baltic states and Poland, advocating for their seizure and handover to Ukraine. However, Belgium is staunchly against this move, warning it could be both illegal and could scare future investors away from Europe.
EU foreign ministers have been considering moving the assets into more risky investments to beef up the amount available if the war ends. Meanwhile, the EU's top diplomat, Kaja Kallas, mentioned the possibility of imposing secondary sanctions targeting Russia's trading partners. Kallas also stated that given the devastation Russia is causing in Ukraine, it is unthinkable that Russia will ever see this money again unless it fully compensates Ukraine.
In a separate development, Denmark announced plans to invite a Ukrainian arms company to start production on Danish soil. The Danish Defense Minister, Troels Lund Poulsen, stated that the site could be operational this year, but did not specify which weapons would be made. Other countries are reportedly interested in bringing the Ukrainian defense industry to their soil through similar schemes.
However, not all EU member states are on the same page when it comes to supporting Ukraine. Hungary regularly delays decisions on support for Ukraine, which may snag the plan to shift the EU's training mission onto Ukrainian soil in the event of a ceasefire.
Finland's Foreign Minister Elina Valtonen wants to see a comprehensive tariff scheme against Russian products and secondary imports into the European Union. This could potentially be a more impactful move for Europe, as it seeks new trade deals with countries like India.
Lithuanian Defense Minister Dovile Sakaliene suggested that only secondary sanctions imposed by the US would "really produce enough pain for the Russian war machine." However, secondary sanctions could be a more impactful and risky move for Europe, as it seeks new trade deals with countries like India.
As the EU continues to navigate this complex issue, it remains committed to supporting Ukraine in its efforts to maintain peace and stability in the region.
