MNI BRIEF: EU Eyes Common Borrowing Options For Ukraine

The European Commission and EU states are looking at common borrowing as one alternative solution for Ukraine' urgent and looming financing needs, Economy Commissioner Valdis Dombrovskis confirmed Thursday. 

Dombrovskis stressed that the option of of using cash balances from immobilised Russian assets mainly held by Euroclear in Brussels to provide Ukraine with EUR140bn in grants remained the "most feasible" route, although strong and continuing Belgian objections are pushing Brussels to consider other options. 

Belgium, home to Euroclear, is seeking cast-iron guarantees against the risk that it might face legal challenges by Russia, despite Commission assurances that the proposal does not amount legally to confiscation, Dombrovskis said. EU finance ministers are aiming at a solution to Ukraine's financing needs by the December EU summit.   (see MNI: Ukraine Loan Talks Need More Time - EU Officials )