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EU Commissioner President Ursula von der Leyen pitched this plan during her State of the Union address, emphasizing that Ukraine would only repay the loan if Russia compensates for damages. The money would serve as an immediate infusion to support Ukraine, effectively turning frozen assets into usable funds without outright confiscation.
legal and Political Challenges
While presented as a clever financial hack, this plan faces significant hurdles. Key member states—such as Belgium and Euroclear—have already voiced concerns about potential legal chaos and investor backlash. The requirement for unanimous approval to guarantee these bonds adds another layer of complexity, as any dissent could derail the entire initiative.