Chancellor Karl Nehammer (ÖVP) made it clear at the EU summit that he would rather use Russian resources to rebuild Ukraine than to buy weapons. For this, Austria is facing heavy criticism on the international stage. It also became known that Austrian diplomats were also putting pressure on Kiev in other areas.
Nehammer wants to ‘support’ Ukraine. He announced this to reporters on Thursday. But when it comes to the question of how, the chancellor finds himself relatively alone on the international stage – and next to troublemakers such as Putin’s friend Viktor Orbán. Nehammer is skeptical about the plan to use interest profits from confiscated Russian assets to buy weapons for Ukraine.
Put your winnings into ‘something good’.
“According to Austrian ideas, a lot must be invested in reconstruction,” the Chancellor explained. The position of the neutral parties is clear: “You must support the state of Ukraine so that it can continue to exist.” But the profits must be put into “something good”.
The international reaction ranges from surprise to outrage. The republic, which still transfers billions to the Kremlin for Russian gas, is once again violently attacked and vilified by Romania, for example, as the ‘Austrian oblast’.
The Ukrainian diaspora association “Mrija” also criticized Nehammer. The organization asked whether the chancellor was on the side of Ukraine or the “terrorist state of Russia”. “It is already time to make final decisions.”
Belgium finds Nehammer proposal “a bit pointless”
Belgian Prime Minister Alexander De Croo, whose country currently holds the rotating EU presidency, tried to be less brutal: “Of course I would like to invest in reconstruction, but it is a bit pointless to invest in reconstruction if you take the risk that the country loses. “
The Chancellery told krone.at that Nehammer would remain true to his line. His statements left no room for interpretation. Austria will not participate in arms deliveries. It is now important to examine and develop the legal framework at EU level.
There is already a first draft of how “banknotes in arms” should be exchanged. Skeptics like Nehammer must be accommodated. The profits from the confiscated Russian assets should be divided and channeled into different pots of money. This gives neutral states like Austria the opportunity to save face.
Anyone who delivers has access to a pot of money
90 percent of the interest profits should flow to the peace facility. Many EU countries already use this special fund to reimburse the costs of weapons and ammunition they send. According to the plan, the remaining ten percent should be invested in the EU budget. This allows Russian money to flow into the reconstruction of Ukraine.
Countries such as Austria or Hungary can therefore claim that they do not benefit from Russian assets. Because anyone who does not send weapons to Kiev will not receive compensation from the special fund.
The EU plans are fraught with legal risks. There is a possibility that the money will have to be returned after the war if Russia takes legal action. Critics of the project are concerned that it could damage the EU’s reputation as a safe haven for investors.
Vienna puts pressure on Kiev
On another issue, Austrian diplomats would actively work against Kiev. Ukraine could soon leave its blacklist, which labels companies as “sponsors of war.”
The reason was pressure from several countries, as the Reuters news agency heard from two people familiar with the process. “It’s China, but not just China,” one of them said. The other stated that Austria, France, Hungary and China had all influenced Kiev. The list could disappear from the internet within days.
Ukraine is suffering from the RBI’s standstill
There is no legal basis for the list of about fifty companies, but it has enormous symbolic significance. After all, who wants to do business with a ‘war sponsor’? The companies mentioned there are accused of continuing to operate in Russia and furthering Russia’s war of aggression against Ukraine by paying taxes.
The Russian activities of the Austrian Raiffeisen Bank International (RBI) are a thorn in the side of Ukraine. Last spring, the bank was added to the list of war sponsors. Kiev justified RBI’s listing with its activities in Russia. It was also pointed out that there was no progress regarding the sale of the subsidiary.
The RBI has not yet found a way to transfer billions in profits from Russia to Austria. Due to Western sanctions, the bank has no access to its profits. Critics claim this is the main reason they have stayed here so far.
RBI as “Putin’s ATM”
It is not the first time that Austria has dealt with this matter. Ahead of the decision on the twelfth sanctions package against Russia, EU diplomats said the Austrian federal government had already made its case to the RBI in Kiev. This has not been officially confirmed.
The fact is that Ukraine has removed the Austrian bank from the blacklist again. It is also true that the RBI has an unflattering nickname in EU circles: “Putin’s ATM!”
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
