EU should send signal to Putin on Ukraine support in long war — diplomat

Diplomat and former Ukrainian ambassador to the U.S., Valeriy Chaly, made this statement on Espreso TV.

“This is another tranche from the profits frozen abroad. Legally speaking, this is a clean process. It’s not the first tranche — now it’s $4 billion, and these funds are urgently needed, directly for Ukraine,” he said.

Chaly called the “drone wall” on NATO’s current borders a strange move, describing it as completely irrational.

“We should build this wall against Russia along borders that will soon, as we are assured, become part of the European Union — that is, Ukraine’s eastern borders. That would be more strategically grounded. What they will do with the current eastern borders, I don’t know. But the fact that they are considering and still hesitating to use frozen Russian assets is worrying, because these could serve as the first line of defense. Ursula von der Leyen has expressed this very well, actively advocating for providing these funds,” the diplomat noted.

He reminded that Russian funds remain in many countries around the world.

“The Americans have basically provided these funds. The British have provided them too. The European Union still cannot make a decision, not because Hungary is blocking it, as is traditionally the case. In this case, it is not Belgium, where there is about $209 billion, but €178 billion of these funds. Neither the Central Bank nor the European Bank, which claims that this will be a blow to the euro. On one hand, they think in terms of the threat of war, on the other, they insist that it shouldn’t harm the banks’ reputation during peacetime or post-war,” Chaly said.

In his view, there is a major contradiction: if, God forbid, people were killed in the EU or NATO, the funds would likely be unfrozen within days.

“Europe suffers from a kind of 'bipolarity'. They cannot focus properly. They try to prevent a large-scale Russian invasion while simultaneously worrying about post-war claims from Russia. Now they need to make a critical decision. Main discussions are ongoing this evening [September 1, ed] in different locations. Tomorrow, I hope, we will hear a real answer. €140 billion over two years — that’s what needs to be decided now,” he stressed.

Chaly added that a signal must be sent to Putin showing that Ukraine can withstand the pressure.

“Putin’s plans for a war of attrition next year will not be as victorious, and the signal will be very strong. The proposed scheme, from the perspective of international law and needs, may not be perfect, but it works. The assets aren’t confiscated. Ukraine receives them as a reparations credit under guarantees from major EU countries. Ukraine uses these funds as a loan, and if Russia doesn’t pay reparations, the funds are used to cover it. If Russia pays, the funds go toward the loan itself. I won’t go into details; all the nuances must be considered — it’s still a loan,” he explained.

He emphasized that this cannot be compared to sending and using weapons.

“Lending to the first line of defense — I don’t understand it. If we are Europe’s first line of defense, Ukrainians are dying, our people are dying, and we have to take loans to do this. Today, and not only today, this has been widely discussed. My position may be emotional. Some say we should just wait. The EU will find a solution,” he said.

He added that this is very surprising and that Ukrainian diplomacy must work actively to explain not only to those who support Ukraine.

“The German Chancellor said he will support this issue. President Macron, in my view, first said one thing, now he says it must be handled carefully. Even Mr. Stubb says it should be handled carefully legally. Fine, cautiously or however. A good solution has been found. And Ms. Kallas says it’s a good solution legally. So this will send a signal. Tomorrow, it will be a signal. I don’t yet have information — I understand the decision has not been made,” Chaly stressed.

The diplomat emphasized that a signal must be sent to Russia that Ukraine will receive financial support.

“We will no longer receive this financial support from America. This is not about weapons; this is about supporting the country’s economic and financial stability. If a signal of Ukraine’s stability and resilience is not sent, it gives Putin huge advantages in planning further aggression,” he said.

Chaly said he does not understand Europe’s logic.

“What else are Europeans afraid of? Russia constantly warns them: ‘Try to take even one euro or dollar from these funds, and you will be under attack.’ They are very strange. They will be under attack not if they take the funds, but if they do not stop Putin now in Ukraine, leaving themselves vulnerable. It’s hard to explain this to those still hesitating. Although this work has been ongoing for quite some time. I am grateful to Ursula von der Leyen, Brussels, and those actively supporting this position,” the diplomat concluded.