Belgium Blocks Rapid Use of Russian Assets, Forcing EU to Seek Plan B
The EU is preparing an alternative financial lifeline for Ukraine amid concerns that member states may fail to agree on using Russia’s frozen state assets.
The Gaze reports this, referring to Politico.
At a summit in late October, EU leaders hoped to approve a proposal that would channel Russia’s immobilized reserves into a €140 billion “reparations loan” for Ukraine. However, Belgium, whose financial system holds the bulk of the assets, raised legal and political objections, stalling the deal at a critical moment.
With peace negotiations gaining momentum and Ukraine warning it may face funding shortages by early 2026, officials in Brussels are now working on a back-up financing option.
According to multiple EU officials, one solution gathering support is a temporary EU-backed bridge loan designed to keep Ukraine financially stable until the reparations mechanism using Russian assets is finalized. The loan would be financed through joint EU borrowing and later repaid once the long-term arrangement is in place.
Two diplomats said Kyiv may be asked to repay the bridge financing from future reparations-linked funds – or the EU could combine both models into a sustained dual-structure package.
European Commission President Ursula von der Leyen signaled on Wednesday that a legal proposal for the main reparations loan is nearly ready. “The next step is now that the Commission is ready to present a legal text,” she told lawmakers in Strasbourg.
France, Germany, the Netherlands, Lithuania and Luxembourg all pressed the Commission this week to accelerate the process, according to officials briefed on the talks.
Belgian Prime Minister Bart De Wever continues to express concern over potential legal risks and the possibility of Russian retaliation if frozen funds are used. Yet EU governments increasingly view the reparations loan as the only viable long-term financing route – given that few member states have appetite for sending large direct cash grants from national budgets.
Any borrowing-based bridging mechanism would require support from all 27 EU countries, leaving space for another potential veto from Hungary, which has repeatedly opposed major funding initiatives for Ukraine.
Some officials believe that labeling the measure as support for reconstruction, rather than war financing, could soften resistance and broaden approval.
As The Gaze reported earlier, European Union leaders have postponed until December a long-awaited decision on whether to channel profits from frozen Russian assets into financial assistance for Ukraine.
Read more on The Gaze: EU's three options or combination could finance Ukraine