Bangladesh, Jan. 15 -- The European Union has formally unveiled a €90 billion ($105 billion) loan package for Ukraine, reigniting one of the most contentious debates in European financial and legal circles: whether frozen Russian sovereign assets can ultimately be used to fund Kievs war effort and post-conflict recovery. While EU officials insist that the proposal complies with European and international law, critics-both inside and outside the bloc-warn that the move could have far-reaching consequences for the global financial system.

The European Commission presented the so-called Ukraine Support Loan on January 14, framing it as a necessary step to ensure Ukraines financial stability and military resilience over the next two ye...