EU member says it won’t finance Ukraine
The Czech Republic will not take part in any financial support of Ukraine, Prime Minister Andrej Babis has said, adding that the bloc must find other ways to continue funding Kiev.
The right-wing Euroskeptic politician, who was appointed prime minister earlier this week, campaigned on prioritizing domestic issues. He has long criticized the extensive aid to Kiev under his predecessor Petr Fiala, whose cabinet launched a major international munitions procurement scheme for Ukraine.
In a video posted to his official Facebook page on Saturday, Babis said he had spoken with Belgian Prime Minister Bart De Wever, a vocal opponent of the European Commission’s plan to fund Kiev through a so-called “reparations loan” tied to about $200 billion in Russian assets frozen in the bloc. The Commission aims to reach a deal on the scheme next week, but De Wever – whose country hosts the financial clearinghouse Euroclear, where the bulk of the assets are held – has called it tantamount to “stealing” Russian money.
“I agree with him. The European Commission must find other ways to finance Ukraine,” Babis said.
Belgium, fearing legal retaliation from Russia, has demanded guarantees from other EU members to share the burden if the funds must eventually be returned. According to Czech media, this could cost Prague about $4.3 billion. Babis said the country simply cannot afford it.
“We, as the Czech Republic, need money for Czech citizens, and we don’t have money for other countries… we’re not going to guarantee anything for [the Commission], and we’re not going to give money either, because the coffers are simply empty,” he stated.
In what is seen as the first step toward advancing the “reparations loan” scheme, the bloc on Friday approved controversial legislation replacing the six-month consensus renewal of the Russian assets freeze with a longer-term arrangement that could shield it from vetoes by opposing states. The move has raised concerns about undermining the EU’s core principle that major foreign policy and financial decisions require unanimous consent, with Hungarian Prime Minister Viktor Orban condemning it as “unlawful.”
Multiple EU states have raised concerns over the loan scheme, citing legal and financial risks. Slovak Prime Minister Robert Fico on Friday warned that further funding for Kiev would only prolong the conflict.
Moscow has condemned the “reparations loan” plan as illegal, with Kremlin spokesman Dmitry Peskov calling it “a grand scam.”
