The European Council met for hours yesterday in Brussels, trying to decide how to fund their support of Ukraine in its conflict with Russia, and looking to grab Russia's Sovereign Wealth Funds to do it.
At issue was some $210 Billion worth of Russian Sovereign Wealth Funds which had been invested by Russia in Europe, and which Europe (illegally) "Froze" when the conflict broke out with Ukraine.
Over the past few years, Europe somehow decided that __ it __ had some right to pledge the Dividends from those Russian investments, as collateral for "loans" to Ukraine, so as to help Ukraine fight Russia.
Experts made clear that Europe had no such right; the money belonged to Russia, not to Europe, and it was absolutely illegal for Europe to "pledge" any of that money or dividends, as collateral for a loan to Ukraine.
Europe did it anyway.
As the war dragged on and it became clear that Russia is winning, Europe shrieked that more had to be done to help Ukraine. Except Europe is basically broke; they don't have the kind of extra cash sitting around that would be needed to "help" Ukraine. So they began eyeing Russia's $210 Billion principal as a war chest.
Yesterday, the United States dashed Europe's delusion about taking Russia's funds. The U.S. informed Europe that Russia's money would be part of any negotiated settlement of the Ukraine conflict This would mean Europe would find itself on the hook for the collateral it "pledged" and if Europe proceeded to grab the entire $210 billion, it would be on the hook for that, too.
Last night, EU Commission President Ursula von der Leyen, announced that Europe had decided they could provide another $90 Billion in assistance to Ukraine, that Europe "will raise from Capital Markets."
So the Europeans are going into hock for Ukraine, to the tune of about $90 Billion.
