Kremlin reacts to reports of Putin rejecting peace plan – as NATO meets after Russia’s war warning

The president of the European Commission has said a proposal to provide Ukraine with a loan financed by frozen Russian assets takes into account “almost all” of Belgium’s concerns.

Ursula von der Leyen told reporters there are “strong safeguards” in place to protect member states and reduce risks as much as possible.

It comes after Belgian foreign minister Maxime Prevot spoke before today’s meeting in Brussels, and said his country considers “the option of the reparations loan the worst of all”.

“The reparation loans scheme entails consequential economic, financial and legal risks,” he said.

“It is not acceptable to use the money and leave us alone facing the risks.”

What does the loan proposal include?

The European Commission has been due to reveal details of its proposal to use the Russian money to help meet Ukraine’s needs through a “reparations loan”.

The plan would essentially use frozen Russian assets to help Ukraine’s economy and war effort over the next two years.

In essence, EU countries would lend Ukraine around $163bn. 

The money would not be seized as such, as Kyiv would refund the money once Russia pays significant reparations for the massive destruction its war has caused.

The assets would remain frozen if Moscow refuses.