European Council: Press remarks by High Representative Kaja Kallas upon arrival

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Good morning, everybody. 

We are going to have a very intense meeting today, a lot of issues.

First, of course, Ukraine; we see a strong push for peace, but it is one-sided. We have not seen any willingness from the Russian side to move or seriously talk about peace. Even the ceasefire for Christmas was rejected. Clearly, we need to put the pressure on Russia, so that they would go from pretending to negotiate, to actually come to the table, and really negotiate. 

And of course, we have the discussions on the reparations loan. Now, the proposals that we have been working on are also addressing Belgium's concerns. I think to go for the legislative proposal means that we all take the risk, because it is a European proposal, so the risk and the burden is shared equally. I think the issues that Belgium has raised, we have also addressed. I hope that we get this over the finish line. Putin is banking on us to fail, so we should not give them that.  

We also discuss European competitiveness and how we can be a stronger economic power. And there, it is very important to have diversified trade deals, and therefore the Mercosur agreement is equally important, to have opportunities for our companies, for our prosperity in this very dangerous world where we have actors that are weaponising trade, that are weaponising supply chains. We need to be more independent in this regard.  

So, a lot of topics. And it is going to be a long meeting. 

Q&A 

Q. How will you reassure Brussels today? 

Belgium? Well, as we have had over the weeks and days, the negotiations to address the concerns that they have. I understand Belgium is under a lot of pressure from Russia, from European countries, but also from the United States. And in order to get off that pressure, actually, we should have a European proposal. Then Belgium will just abide by the law and whoever has any concerns, can go to court against the European Union. But I think the fundamental issue is that Russia is causing the damage in Ukraine, so they should also be responsible for the reparations, and this reparations loan is based on that very idea. 

Q. What happens if you fail? 

We have to work on the plan A that we have, and we really need to have a solution, because, like I said, Putin is banking on us to fail. We just cannot afford to fail. We have to show that we are strong. Of course, we are 27 democracies. That takes time and discussions take time, but in the end, unity is our strength, and we need to have a solution. 

Q. [inaudible] 

Security guarantees, the talks are going in the right direction. Ukraine really needs tangible security guarantees so that it is clear if they are attacked again, who comes in with the troops, who gives capabilities. So that it is assurance, not on paper, but really with real means. And there is important that also United States is a part of these security guarantees. 

Q. Do frozen assets jeopardise the US peace deal? 

The peace deal is jeopardised by Russia that has not accepted anything. Again there is strong push for peace, but it is one sided, as Russia has not agreed to anything. So that is the main risk. Russia is the one who has started the war, who is doing the bombing, harming the civilians. They can also stop this war, and we need to do everything that they will. That is why we have the pressure. That is why we have the sanctions, and that is why we are also working on the reparations loan, so that there will be funding for Ukraine for the next two years. 

Q. [inaudible] 

We will also discuss enlargement. Yesterday already had discussions with the Western Balkan countries. I think this is also a pivotal moment that we have to use in order to really build our geopolitical power. When there are voices who are saying that Europe is no good, then there are a lot of countries who want to join Europe so definitely we have something good and we have to make use of it, but we are also moving on so that the countries will come and join European Union. 

Q. [inaudible] 

We are supporting Georgian people, but we are not supporting Georgian government.  Georgian Government is taking Georgia to the wrong direction that goes, not in the direction of European Union, and that is why our strong message to the Georgian people is that we stand with them, but as long as the government is making wrong steps, we are not going to go on with the candidacy.  

Q: Is the reparations loan the most viable option? 

It is the most viable option. The reparations loan is the most viable option right now on the on the table. We need to work with that, as we have tried other things before. We have taken these negotiations quite far also to address the issues that Belgium has had to take down the concerns; I really do hope that we get this over the finishing line. 

Q: [inaudible] 

The discussions are ongoing, but it is not where I am really involved. 

Q. [inaudible] 

This is very important because it sends a strong signal to Russia that they cannot outlast us. It sends a strong signal to Ukraine that there is a funding for the next two years, and it also sends a strong signal to all the other actors that Europe is taking the decisions and is strong in this sense. The reparations loan is based on the principle that the one who is doing the damage has to also pay for this. Clearly, this is something that is the most viable option that is right now on the table. 

Q. What will happen if there is no agreement today? 

We will concentrate our efforts to have the agreement today, or at least during this meeting. Maybe the meeting will not end today, but we will stay here as long as we have a solution. 

Q. [inaudible] 

Russia wants us to think that they can outlast us, and that is why it is important that we show that this is not the case. We know that the Russian economy is not doing well and they are clearly banking on us to fail, so we should not give them that. 

Q. [inaudible] 

Of course we have seen strong push for peace, but it is one sided, as we do not see Russians also wanting peace. Even Christmas truce was rejected by Russia. Therefore, our approach has been, we have to put the pressure on the aggressor so that they would go from pretending to negotiate to actually come to the table and really negotiate. We are not there. 

Q. On the frozen assets, what does it mean for Belgium to be able to agree? 

They have expressed their concerns on various topics, and various issues have been also replied and taken into account regarding their worries. But I think what is important is to understand that if we do this European proposal, we actually take the pressure off from Belgium, because then the whole of Europe is responsible and not Belgium being under the pressure. The concerns that they have had, we also have had amendments to address those concerns. I really do hope that we get this agreement today.  

Q. [inaudible] 

The reparation loan is for Ukraine, and Ukraine is in war. Russia is bombing Ukraine every day, so that is why the reparations loan is needed for Ukraine, to be able to defend itself and the financing for Ukraine. That is what is at stake right now. 

Q. Will you move on without Belgium? 

Many Member States have said that Belgium's consent is very important. I do not think that we are going to move on without Belgium feeling comfortable. 

Q. What are the chances? 

I agree with Friedrich Merz. It is 50/50.