Belgium Blocks Ukraine’s Access to €140 Billion Reparations Credit Using Frozen Russian Assets
The ongoing efforts of the European Union to provide financial support to Ukraine have encountered significant obstacles, as Belgium officially blocked the possibility of granting Ukraine a crucial reparations loan worth 140 billion euros.
This loan was intended to be financed through profits derived from frozen Russian assets, a plan discussed extensively during the recent summit in Brussels, where leaders debated the use of approximately 190 billion euros of Russian assets to support Kyiv.
Despite the proposal to leverage these assets as collateral for Ukraine’s immediate financial needs, key issues around legal uncertainties, potential Russian legal actions, and financial risks prompted Belgium to oppose the initiative.
European Council President António Costa announced plans to ensure financial aid to Ukraine for 2026-2027, but emphasized that technical issues must be resolved first.
Belgian Prime Minister Bart De Wever stressed the importance of a clear legal framework and guarantees for the refund of funds in case of necessity, highlighting unresolved risks.
French President Emmanuel Macron acknowledged that the loan remains a core support mechanism for Ukraine despite temporary setbacks, while German Chancellor Friedrich Merz admitted some of Belgium’s concerns need urgent resolution.
Ukrainian President Volodymyr Zelensky, present at the summit, underscored the urgency of securing funding by early 2026, viewing it as vital support for Kyiv’s war effort and economic stability.
Leaders are scheduled to revisit this issue at the upcoming summit on December 18; financial support during this period is crucial for Ukraine’s military and economic operations.
Historically, the concept involves using frozen Russian assets as collateral rather than direct confiscation, with profits from these assets, such as interest, directed toward repaying the loan.
This approach offers Ukraine an opportunity to access significant funds without immediate legal hurdles or diplomatic escalation from Russia.