European Central Bank refuses to backstop $163 billion Ukraine loan — report

The European Central Bank has refused to backstop a 140 billion euros ($162.53 billion) payment to Ukraine, undermining an EU plan to raise a “reparations loan” backed by frozen Russian assets, the Financial Times reported on Tuesday.

The ECB concluded the European Commission proposal violated its mandate, the newspaper said, citing multiple officials, adding to Brussels’ difficulties in raising the loan against Russian central bank assets immobilised at Euroclear, the Belgian securities depository.

Reuters could not immediately verify the report.

($1 = 0.8614 euros)

Mrinmay Dey/Reuters