EU leaders give 'broad support' for drone wall and using frozen Russian assets to aid Ukraine

EU leaders gathered in Copenhagen on Wednesday gave "broad support" to proposals to ramp up the development of drone and anti-drone technology and to use immobilised Russian assets to loan money to Ukraine.

"Leaders broadly supported initial priority flagship projects that will strengthen Europe's security, including the European drone wall and the Eastern Flank Watch," European Council President Antonio Costa told reporters at the end of the informal gathering in the Danish capital.

Ahead of the meeting, which came after a series of airspace violations in Poland, Estonia, Romania, and Denmark, the European Commission had released a so-called Scoping Paper in which it outlined, among other ideas, four flagship projects it believes need to be financed and implemented as a matter of urgency. These include a European drone wall, an Eastern Flank Watch, an Air Defence Shield and a Defence Space Shield.

Mette Frederiksen, the Danish prime minister who hosted her European counterparts, also said there was "broad support" for the Commission's proposals.

"We need to strengthen our production of drones, of anti-drone capabilities. And this includes building up a European network of anti-drone dimensions that can detect and of course also neutralise intrusion from outside. So we have to create a European ecosystem that will enable Europe to develop cutting-edge drone solutions inspired by what they are doing in Ukraine already," she added.

She insisted there was no "conflict between east and west" on the topic even though it would likely benefit the eastern flank, which is geographically closer to Russia.

The European Commission chief, Ursula von der Leyen argued that the airspace violations "are part of hybrid war tactics" and "demand a strong and determined reaction and answer from Europe".

"We must provide the strongest of deterrence at scale and at speed. And that was the focus of our discussion today. There is a clear sense of urgency because preserving peace has always been a core task of the European Union," she added.

Her services are set to deliver a roadmap for defence in two weeks that will build on the discussions leaders had on Wednesday and outline capability targets with a view for them to take decisions at a formal summit later this month.

Belgian concerns

While leaders spent most of their time in Copenhagen haggling over drones, they also had time to discuss new measures to reinforce financial and military assistance to Ukraine, which is seen as intrinsically interlinked to the matter of European defence.

“We talk a lot about security guarantees to Ukraine, but, in fact, it's the other way around: Ukraine is today Europe's security guarantee. Our support to Ukraine is a direct investment in our own security,” Frederiksen said.

The 27 leaders briefly exchanged about the Commission’s audacious proposal to issue a €140 billion to Kyiv based on the cash balances of Russia’s frozen assets, the bulk of which is today held at Euroclear, a central securities depository based in Brussels.

The loan would be disbursed gradually over time, subject to conditions.

Under the plan, which is still in early stages and has to be fleshed out, Ukraine would be asked to repay the loan only after Moscow agrees to compensate for the damages caused. Hence, the name “Reparations Loan”. Afterwards, the Commission would repay Euroclear, and Euroclear would repay Russia, completing the circle.

While the blueprint earned broad support among leaders, it has been met with the resistance of Belgian Prime Minister Bart De Wever, who, during the debate between leaders, took the floor and expressed legal and technical concerns. (De Wever did not speak to reporters upon arrival.)

One key question for Belgium is risk management: how any eventual pitfall, default or lawsuit would be handled collectively by the bloc without leaving the country, as Euroclear host, to fend for itself.

At the end of the meeting, von der Leyen sought to assuage De Wever’s reservations.

“It's absolutely clear that Belgium cannot be the only member state that is carrying the risk, but the risks have to be put on broader shoulders,” she said.

“There is no seizing of the assets,” she once again stressed. “The Russian claim stays a Russian claim.”