Brussels: Belgium Cools EU Plan to Fund Ukraine with Frozen Russian Assets
The European Union’s efforts to utilize frozen Russian state assets to financially support Ukraine have hit a roadblock, as Belgium is demanding guarantees against potential legal and financial risks. While EU leaders agreed to meet Ukraine’s financial needs through 2026-2027-including military aid-a firm commitment to leveraging Russian assets was weakened at a recent summit due to belgian concerns.
At the autumn summit, the EU Commission was tasked with proposing options for funding Ukraine, alongside exploring alternative financial solutions. The final declaration, approved by all EU members except Hungary, affirmed a commitment to Ukraine’s “urgent financial needs for 2026-2027, including its military and defense efforts.” The Commission is expected to present financial support options based on an assessment of Ukraine’s requirements. The declaration also stipulated that Russian assets will remain frozen until Russia ends its aggression and provides reparations.
Prior to the summit, there was anticipation of a formal request to the Commission for a legal proposal outlining a €140 billion loan to Ukraine, spearheaded by Chancellor Friedrich Merz. However, Belgian Prime Minister Bart De Wever insisted on risk-sharing among all EU members regarding potential legal challenges from Russia and financial responsibility should the assets need to be returned.
De Wever’s conditions centre on ensuring Belgium, which holds the majority of frozen Russian assets through Euroclear, does not shoulder the burden alone. A final decision is anticipated at the December EU summit, according to an EU diplomat.