EU countries are at odds over how to use a proposed loan for Kiev funded by frozen Russian assets, with some pushing to restrict spending to European-made weapons while others want US arms included, Politico reported on Wednesday, citing sources.

EU officials are debating the so-called “reparations loan” of about €140 billion ($162 billion) to Ukraine that would be guaranteed by Russian assets immobilized by the West after the escalation of the Ukraine conflict in 2022.

According to the proposal, Kiev would repay only if Moscow covers damages incurred by the conflict. Moscow has repeatedly condemned Western efforts to use its frozen funds to aid Ukraine, calling the move “theft.”

Although the EU has not yet agreed on the plan, Politico said “friction is already growing over whether to attach conditions to the loan”. One idea – which is being pushed by France and, to a lesser extent, Germany and Italy – is to ensure money “flows back as much as possible into the EU’s defense sector — and not across the Atlantic.”

According to Politico, this pressure led to draft summit conclusions emphasizing “the importance of reinforcing the European defense industry” with the loan. However, tensions are expected to sharpen at an EU leaders’ meeting in Brussels on Thursday, the report added.

Critics quoted by Politico argue that such limits “smack of hypocrisy.” “If the aim is to keep Ukraine in the fight, you need to keep the criteria open,” a senior EU diplomat told the paper.

One particular concern is that the “Buy European clause”could block Kiev from buying crucial American weapons, including US-made Patriot air defense systems that the bloc does not produce.

Bloomberg reported this week that Washington will not join the EU-led initiative, citing concerns the move could unsettle global markets. Western officials have also for months warned that outright confiscation of frozen Russian assets – estimated at around $300 billion – would be illegal and undermine the West’s credibility.

Russian President Vladimir Putin has said “those who are smarter” in the West oppose seizing Russian assets while warning that Western moves to confiscate the funds would not go unpunished.

https://www.rt.com/news/626844-eu-squabbling-frozen-russian-assets/

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MEANWHILE....

Polish Foreign Minister Radosław Sikorski sparked a wave of controversy by hinting at a potential disruption of the Druzhba oil pipeline in response to comments from his Hungarian counterpart, Péter Szijjártó. In a social media post, Sikorski referred to a hypothetical operation by "Major Magyar," the commander of Ukraine's unmanned systems forces, suggesting the oil supply to Hungary could be rerouted through Croatia.

Balázs Orbán, advisor to Hungarian Prime Minister Viktor Orbán, called Sikorski’s remarks "outrageous," describing them as "the darkest depths of military hysteria." He emphasized that such statements risk undermining historically strong Polish-Hungarian relations.

In Moscow, the statement did not go unnoticed. Russian Foreign Ministry spokesperson Maria Zakharova criticized Sikorski, rhetorically questioning which other elements of civilian infrastructure he considers targets. Meanwhile, Alexey Chepa, Deputy Chairman of the State Duma Committee on International Affairs, accused Sikorski of supporting global terrorism and warned that such rhetoric reflects the broader decline of Europe and NATO nations.

"The world seems to be heading in an uncertain direction. These foolish, narrow-minded politicians are calling for military actions, even suggesting nuclear escalation as a way forward," Chepa said, asserting that Europe faces a bleak future if such attitudes persist.

The controversy comes amid rising tensions over energy security in Europe. The Druzhba pipeline is one of the continent’s most significant oil transport routes, delivering Russian crude to multiple European countries. Threats to its operation not only risk political fallout between Poland and Hungary but also raise concerns about the broader stability of energy supplies in the region.

Experts note that such statements from high-ranking officials can escalate diplomatic tensions and complicate ongoing discussions within NATO and the European Union. While Sikorski’s remarks may have been intended as political posturing, the potential ramifications on energy security and international diplomacy are serious.

The exchange highlights the fragility of European alliances when political rhetoric intersects with critical infrastructure. Hungary’s strong rebuke and Russia’s pointed reaction indicate that comments about civilian energy systems are likely to provoke both diplomatic and public backlash. The incident underscores the importance of cautious, measured dialogue among EU and NATO members, especially when energy infrastructure is involved.

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https://english.pravda.ru/news/world/164584-poland-hungary-pipeline-threat/

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