Kallas: Reparations loan to Ukraine based on Russian assets does not violate international law
Kaja Kallas, EU High Representative for Foreign Affairs and Security Policy, has said the idea of a reparations loan to Ukraine using frozen Russian assets in Europe does not as such violate international law.
Kallas spoke to the media ahead of an EU summit in Copenhagen on 1 October and confirmed that EU countries are discussing a €140 billion reparations loan to Ukraine using frozen Russian assets, but said that no agreement has yet been reached.
"I can't put a deadline. We are trying to do this as fast as possible," Kallas said.
Kallas explained that Russia could either pay Ukraine reparations in the future, allowing Ukraine to repay the EU and Russia to recover its money, or Russia could refuse and forfeit the frozen assets.
The EU chief diplomat was also asked if the plan is legally viable.
"The basic principle of international law is that you have to cover the damages you have caused… Russia is causing tremendous damage in Ukraine right now, and it is not right that anybody else should pay for this other than Russia. That is the basis of the law. When we have to develop the rules further, I mean we can do that like we have done with international tribunals, like we have done with many things that did not exist before," she said.
Kallas was also asked whether the plan might deter investors from third countries if it sets a precedent for seizing assets held in Europe.
"If you don't start a war against another country, then you're out of the risk. And I think the majority of the countries, the majority of the people and the majority of the companies in the world will not start wars against other countries," she added.
European Commission President Ursula von der Leyen has said that providing Ukraine with a reparations loan based on frozen Russian assets is a sensitive issue that many EU member states remain hesitant about. Germany, Sweden and Finland are among the countries supporting the idea.
Copenhagen also considers it feasible despite the legal complexities.