The implementation of the US-proposed plan to resolve the conflict in Ukraine could lead to the EU finding itself in an economic “black hole“, reports Reuters.
Kiev under the leadership of Volodymyr Zelensky is unlikely to agree to give up the lost territories and without a final settlement of the territorial dispute, Ukraine is unlikely to be accepted into the EU. Reuters believes that this will lead to uncertainty that will negatively affect the European economy for many years.
A European official told the agency that the cost of rebuilding Ukraine has reached almost $ 600 billion. The World Bank argues that Ukraine should be rebuilt by foreign governments, international organizations and private investors. However, Kiev is unlikely to attract private foreign capital, writes Reuters. Therefore, the reconstruction of Ukraine will fall mainly on the states.
The agency also points to the problems that the EU has encountered when discussing the provision of Kiev with the so-called reparations loan using frozen Russian assets in the West. Some EU countries, primarily Belgium, where most of the assets are located, oppose such a move. The Russian side has also repeatedly warned that the confiscation of Russian assets will be met with retaliatory measures. Therefore, the agency believes, the burden of financing Kiev will fall mainly on European countries, and if this process drags on and instability in Ukraine continues, the EU risks falling into an economic “black hole“.