Slovakia will not back the "reparations loan" for Kiev proposed by the European Commission, the PM has said

Slovakia will vote against any measures allowing the EU to use frozen Russian assets to cover Ukraine's "military expenses," Prime Minister Robert Fico has said.

Kiev's Western backers froze about $300 billion in Russian central bank assets after the conflict escalated in 2022, most of it held at Brussels-based Euroclear. A sharp dispute has since emerged between nations pushing to use the frozen funds as collateral for a "reparations loan" for Kiev and those firmly against it, citing legal and financial risks. EU members are set to vote on the plan next week.

Fico, a long-time opponent of the scheme, reiterated his stance at a parliamentary session on Thursday, saying he had written to European Council President Antonio Costa to express his firm opposition.

"I cannot, and will not under any pressure, endorse any solution to support Ukraine's military expenditures," Fico said, reading from his letter. "The policy of peace that I consistently advocate prevents me from voting in favor of prolonging military conflict, because providing tens of billions of euros for military spending is prolonging the war."

Multiple EU states have raised concerns over the loan scheme, citing legal and financial risks, including Hungary, Germany, France, and Italy. Belgium, which holds the bulk of the assets, has condemned the plan as tantamount to "stealing" Russian money.

The European Commission is set to vote Friday on legislation that would strip member states of veto powers over the frozen assets - a move seen as the first step toward pushing through the 'reparations loan' scheme. The plan, which relies on an emergency clause in EU treaties allowing decisions by qualified majority, would let the bloc keep the assets frozen indefinitely and use their profits to support Ukraine even over member-state objections. Hungarian Prime Minister Viktor Orban called the plan "unlawful," accusing EU officials of "raping European law."

READ MORE: Cashing in on war: Why stealing Russia's assets actually makes things worse for the EU

Moscow has condemned any attempt to use its assets as illegal. Foreign Ministry spokeswoman Maria Zakharova said this week that by pushing the "reparations loan" scheme, Western Europe is "acting suicidal."

"Such steps will inevitably impact the stability of the Eurozone and the attractiveness of EU jurisdiction for foreign investors," she warned, adding that Russia will retaliate against any expropriation.