EU's Decision Not to Seize Russian Assets Strikes Merz and von der Leyen: FT

The European Union's decision to provide a loan to Ukraine funded by European taxpayers rather than utilizing frozen Russian assets is a "political blow" to German Chancellor Friedrich Merz and European Commission President Ursula von der Leyen, according to the Financial Times.

The publication notes that it was Merz and von der Leyen who proposed and defended the concept of a "compensation loan" and had also attempted to pressure Belgian Prime Minister Bart De Wever to abandon his objections.

According to the Financial Times, during the EU summit held on December 18-19, the discussions about the confiscation of Russian assets were overshadowed by Belgium's demand for "broad guarantees" to cover potential financial risks resulting from legal proceedings and retaliatory actions from Russia. This has forced other leaders to abandon the decision on asset confiscation.

Officials indicated that France and Italy have mainly called for an "alternative proposal" using the EU's general budget.