EditHow Belgium is blocking Europe’s bid to unlock frozen Russian assets for Ukraine
The country demands legally binding EU-wide risk-sharing, arguing it shouldn't face solo fallout from litigation or reputational damage to Euroclear
The European Union is racing to secure tens of billions in loans for Ukraine amid fading U.S. support, Russian battlefield advances, and Kyiv’s looming funding shortfall in early 2026. With leaders set to decide on 18-19 December, the bloc’s preferred path – borrowing against roughly €210 billion ($245 billion) in frozen Russian assets – hinges on overcoming staunch opposition from Belgium, home to most of the funds.
Despite the European Commission’s latest “creative” safeguards unveiled on 3 December, Belgian officials have doubled down, rejecting the plan as “fundamentally wrong” and too risky for their country alone to bear.
Belgium’s unyielding stance, driven by fears of Russian lawsuits and retaliation, threatens to derail the scheme and force reliance on costlier alternatives like EU budget borrowing—already dismissed by Hungary’s Viktor Orbán.
What are Russia’s frozen assets?
Following Russia’s full-scale invasion of Ukraine in 2022, the EU froze hundreds of billions in Russian central bank assets, including cash, shares, and bonds – its harshest sanction to date. These funds, now Europe’s key leverage in potential peace talks involving Washington, Moscow, and Kyiv, total around €290 billion globally, with €183-194 billion held in Europe.
The bulk – over €180 billion – is stored at Euroclear, a Brussels-based securities depository acting as a financial “vault.”
Has Europe tapped Russia’s cash yet?
So far, the West has limited itself to using interest from these assets—yielding loans and payments to Ukraine that Russian President Vladimir Putin has branded as “theft.” In May 2025, Euroclear even redistributed €3 billion from frozen holdings to compensate Western investors hit by Moscow’s retaliatory seizures.
But direct use of the principal remains untried, amid warnings from Dmitry Medvedev, Russia’s deputy security council chairman, that it could be seen as justification for war.
Potential fallout includes risks to Western assets still stranded in Russia, worth tens of billions.
What’s the European Commission’s plan—and how does it address Belgium?
Ukraine faces €135 billion in needs for 2026-2027: €52 billion for government operations and €83 billion for defence, with funds needed by Q2 2026.
The Commission’s flagship proposal, detailed on 3 December, is a “reparations loan” using €90-140 billion of frozen assets as collateral over two years.
Here’s how it works:
Euroclear and other depositories (in France, Germany, etc.) invest the frozen cash in EU-issued debt.
The EU borrows from these institutions and lends to Ukraine.
Repayment from Kyiv is deferred until Russia pays war reparations – assuming assets stay frozen indefinitely.
To bypass unanimity hurdles (e.g., from Hungary), the Commission argues it can proceed with a qualified majority: 15 of 27 member states representing 65% of the EU population.
An emergency law would override national vetoes to keep assets frozen.
These “creative” elements directly target Belgium’s concerns: Commission President Ursula von der Leyen promised “strong safeguards,” including EU-wide guarantees against lawsuits and shared liability if Russia sues Euroclear.
As a fallback, the plan offers hybrid borrowing from the EU’s shared budget, blending assets with common debt to spread risks.
Why Belgium remains unmoved
Despite these concessions, Belgium – where Euroclear is based – has intensified its blockade. Prime Minister Bart De Wever, a Flemish nationalist, wrote to von der Leyen on 27 November calling the reparations loan “fundamentally wrong,” citing violations of international law, market instability, and a potential multibillion-euro bill for Belgium if sued.
Foreign Minister Maxime Prévot echoed this on 3 December, deeming it “the worst of all options” and insisting the Commission’s tweaks “do not address our concerns in a satisfactory manner.”
Belgium demands legally binding EU-wide risk-sharing, arguing it shouldn’t face solo fallout from litigation or reputational damage to Euroclear.
De Wever added a strategic twist: using the assets now would forfeit them as a “bargaining chip” in U.S.-Russia peace talks, especially after Trump’s 28-point plan proposed joint U.S.-led reconstruction with 50% American profits—sparking European fury and urgency.
Recent drone sightings over Belgian sites, possibly Russian signals, heighten fears of “painful” retaliation.
Critics like the Make Russia Pay coalition counter that legal shields (e.g., a 2025 EU ban on recognising related arbitral awards) minimize risks, but Belgium views the plan as unprecedented and destabilizing.
This opposition, amplified post-Trump’s proposals, has made Belgium “Russia’s most valuable asset” in stalling EU unity, as per Politico.
Without a breakthrough, Ukraine may need short-term bridging loans, delaying aid until April when its budget could dry up. The December EU summit looms as a flashpoint, with Germany pushing hard but unanimity elusive.
With Reuters, edited by g.g.
Caption: Belgian Prime Minister Bart de Wever speaks during his State of General Policy speech in Brussels, Belgium, 26 November 2025. EPA/OLIVIER HOSLET
Updated: December 5, 2025 - 07:13
