Belgium has raised strong objections to the European Union’s plan to use frozen Russian assets to provide a “reparations loan” to Ukraine. Prime Minister Bart De Wever and Foreign Minister Maxime Prévot argue that tapping €140bn of Russian state assets held in Belgium could expose the country to massive legal risks and potential bankruptcy if Russia takes action. They have called for an alternative approach, suggesting the EU borrow the necessary funds from financial markets instead.
Most EU countries, including Germany, support the proposal, viewing it as an urgent way to fund Ukraine’s defense amid ongoing Russian attacks. Chancellor Friedrich Merz and EU foreign policy chief Kaja Kallas argue that a reparations loan would strengthen Europe’s position against Moscow and could incentivize Russia to negotiate peace. However, legal experts and Belgium’s central securities depository, Euroclear, caution that lending these frozen assets carries significant financial and legal dangers.
The European Commission is preparing a legal framework to address the plan, but disagreements among member states have delayed progress. Belgium insists on legally binding guarantees to share risk with other EU countries, while Russia has threatened decades of litigation if the assets are used for Ukraine. With the EU summit approaching, a final decision on the contentious proposal remains uncertain.
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