Good afternoon everyone.
Indeed, we stand at a crossroads.
The outcome of Russia's brutal war against Ukraine is one that will also determine the EU's security and freedom.
We must act now.
And to succeed we must act together.
The proposals we put forward today work for Ukraine, the EU and its Member States.
Because in providing this lifeline to Ukraine, we are also enhancing our security.
Not providing the support Ukraine needs to continue its fight for survival would come with a high cost.
Not only to Ukraine, but also to our entire continent's security and freedom.
And we are also sending a strong message to Russia.
First of all, let me stress that everything we propose today is legally robust, fully in line with EU and international law.
It respects the principle of sovereign immunity.
And the Reparations Loan is without prejudice to the claims of the Central Bank of Russia.
Now, the President has already explained our two solutions, including the Reparations Loan.
I will focus on the protections and safeguards contained in the proposals.
Having listened carefully to all Member States, we propose to set up a robust system that builds on the existing safeguards we have created over the last years.
In a spirit of solidarity, we call on Member States to provide guarantees to underpin the loan.
These guarantees ensure that the EU borrowing is fully protected and ensures fair burden sharing among Member States.
This is the time to show the strength of the Union.
Under the next Multiannual Financial Framework, these guarantees would be taken over by the headroom of the EU budget.
Should there be unanimity to amend the current MFF regulation, which we are proposing, this protection could already be provided in this MFF's headroom.
In short, these protections would cover the unlikely event that the Union would have to repay its borrowing without reparations, whilst at the same time covering any Member State if it is forced to pay on a claim from Russia.
Although the risk of this happening is very low.
First, these are not acts of individual Member States but are acts of the Union, which are fully in line with EU and international law.
Second, existing protections ensure that claims against Belgium or any other Member State cannot be enforced in the EU, due to a so-called 'no claims clause'.
Thirdly, to address the risk of enforcement on non-sovereign assets of a Member State in third countries, we are introducing a provision that allows the recovery of damages.
The proposals also provide for mechanisms to deter any actor facilitating enforcement of claims on behalf of Russia, or actors sponsored by Russia, be it inside or outside of the Union.
The guarantees would build on all these safeguards, where it is only appropriate that an act of the Union entails Union responsibility, and not the responsibility of any one Member State.
Finally, we are also proposing today provisions for the continued immobilisation of Russian assets in the EU.
Russia's war on Ukraine is not only a flagrant breach of the international order.
It represents a major distortion of the EU economy.
In addition, Russia has ramped up its hybrid attacks over the territory of the Union.
This is why a proposal for a new regulation, provides a legal basis for measures appropriate to this economic and security situation, including the prohibition of transferring the immobilised assets to Russia.
And it is in line with the European Council Conclusions that state, let me remind you, that: 'Russia's assets should remain immobilised until Russia ceases its war of aggression against Ukraine and compensates it for the damage caused by this war'.
This regulation will work in parallel with the sanctions regime.
In terms of volumes of financing, there are around €210 billion worth of immobilised assets in the EU.
This is, therefore, the maximum loan amount we could propose.
The President already explained how the money would be allocated.
It would not be disbursed in one go, but built to respond to Ukraine's evolving needs.
These would be spelled out in its financing strategy, to be submitted every year.
We will also keep €45 billion of this amount in reserve to repay existing loans, ensuring that the ERA loans do not add to Ukraine's debt burden.
And last but not least, the proposals are underpinned by Ukraine meeting essential pre-conditions to receive support.
This includes respect for democratic mechanisms, human rights and the rule of law – including the fight against corruption.
To conclude, time is of the essence.
Ukraine's needs are not only sizeable, but also urgent.
We now call on Members States to show unity and decisiveness.
We must move forward with providing Ukraine with the support it urgently needs to stand up for its people, sovereignty and the security of all of Europe.
