Media: IMF aid to Ukraine under threat

Brussels cannot reach an agreement on critical funding for Ukraine, which depends on Belgium’s support.

Problems within the European Union threaten further financial support for Ukraine from the International Monetary Fund (IMF). The main obstacle is Belgium’s reluctance to support the joint EU loan plan of 140 billion euros. This, in turn, could lead to a halt in financial aid from the IMF, raising concerns among investors and could play a critical role in Ukraine’s economic stability.

The EU’s plan to allocate reparational credit, to be secured with frozen Russian assets, suffered a blow after Belgium expressed disagreement over financial and legal risks. If this mechanism is blocked, the IMF may refuse to grant Kyiv a new loan of 8 billion dollars, which could have significant consequences for the further economic development of Ukraine, which continues to struggle with the effects of a full-scale conflict.

The next EU leaders’ summit is scheduled only for December 18-19, leaving little time to make a decision. Without progress in the negotiations, Ukraine’s financial viability could be at risk, considering the reduced support from the United States. European officials emphasize the importance of quickly preparing a legal proposal or the possibility of holding an extraordinary summit to resolve the situation.

Meanwhile, one European official stated that Ukraine should not have to repay the loan funds independently in the coming years. Instead, it is planned that the financial obligations are to be assumed by Russia after the end of the war and the payment of reparations to Kyiv. This approach reflects the support for Ukraine by other countries and effectively makes the loan free of charge for the Ukrainian government.