Japan has declined to join the European Union’s proposal to use frozen Russian assets to finance Ukraine, Politico reports, citing unnamed diplomats familiar with the negotiations.
“Japan signaled it is unable to use around $30 billion worth of Russian frozen assets held on its soil to issue a loan to Ukraine,” Politico writes.
However, several officials told Politico that Japan’s position is also linked to U.S. opposition to using Russian assets for Ukraine, as Tokyo does not want to go against a key ally.
“The European Commission wants EU capitals to strike a deal on using up to 210 billion euros ($244 billion) in sanctioned cash before a leaders’ summit on Dec. 18,” the text reads.
Belgium, however, is resisting the plan due to concerns that it could be held liable for repaying the full amount if Russia were to reclaim the money.
As a result of the U.S. and Japan declining to join the initiative, Brussels’ plan leaves the EU largely alone in shouldering Ukraine’s future financing needs, especially for reconstruction.
Previously, UWC Executive Committee member Zenon Kowal explained that Belgium is not categorically opposed to using frozen Russian assets to support Ukraine but insists on robust legal guarantees.
Most of the frozen Russian assets are in Belgium where Euroclear, the world’s largest securities clearing settlements systems, is based.
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