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The European Central Bank has refused to provide guarantees for a proposed “reparations loan” of €140 billion to Ukraine, which was to be secured by frozen Russian assets, according to sources cited by the Financial Times.
The report says several ECB officials concluded that the plan proposed by the European Commission would violate the ECB’s mandate. The decision raises new obstacles for Brussels in securing a loan using immobilized assets of Russia’s central bank held at Euroclear.
The loan — backed by frozen Russian assets — was envisioned as a key financial pillar to support Ukraine’s budgetary needs in 2026–2027. However, Belgium, where the assets are banked, opposes the scheme. Belgian authorities demand stronger guarantees from the EU to avoid being the sole defendant in case of a legal challenge by Russia.
Meanwhile, some in the EU believe Belgium may have hidden motives for holding onto Russian funds — such as obtaining tax revenues — because the country has yet to implement a transparent mechanism for accounting for these assets.
