Christine Lagarde on Ukraine

Christine Lagarde affirms strong support for Ukraine, particularly viewing deeper economic integration with Europe as a crucial path for its recovery and future prosperity amidst geopolitical fragmentation. She highlighted Ukraine's resilience in the face of Russia's war and noted that closer economic ties, like the existing trade in sectors such as automotive wire harnesses and advanced drones, offer significant growth and resilience benefits. The President of the European Central Bank emphasized that this integration requires Ukraine to maintain continuous, sound domestic policy frameworks, especially in fiscal governance, to manage potential capital inflow risks.

The ECB President has clarified the central bank's stance regarding the use of frozen Russian assets, stating that the institution will assist Kyiv but must operate strictly within the boundaries of European treaties. She made it clear that the ECB cannot violate Article 123 of the treaties by acting as a financial guarantor for direct loans to Kyiv using frozen assets, asserting, "We are not refusing, we are following the rules." Lagarde expressed confidence that the European Union will agree on a reparation loan plan, while also stressing the necessity for sufficient political will among leaders for decisive action.