Photo: kyivindependent
High-ranking EU and Belgian government officials will meet on Friday to try to break a political deadlock over using frozen Russian state assets to fund a €140 billion reparations loan to Ukraine, Politico reports, citing two EU officials.
Belgium is reluctant to back the European Commission’s plan, which would use sanctioned Russian funds to support Ukraine without permanently confiscating them, as the money is held in Brussels-based financial company Euroclear. Belgian Prime Minister Bart De Wever fears his government could be forced to return billions to Moscow if Kremlin lawyers sue over the initiative. At the EU leaders’ summit in October, De Wever demanded stronger guarantees to protect Belgium from potential financial and legal risks, according to Politico.
The Friday meeting follows stalled talks on the reparations loan earlier this week, with deputy finance ministers failing to reach progress. European Commissioner for Economy Valdis Dombrovskis warned: “The longer we delay, the harder it will be to resolve the issue. This could jeopardize potential interim solutions.”
Politico notes that Ukraine could face a budget shortfall next year if funds are not received by spring. Without an agreement on Russian assets, EU governments may have to finance Kyiv themselves, which is unlikely given post-pandemic budget strains. The Commission plans to present Belgium with a memorandum on alternative funding options, including EU borrowing, hoping De Wever will relent if no other viable solutions exist.
Russian assets for Ukrainian aid
Earlier, European Commission President Ursula von der Leyen proposed using frozen Russian assets as collateral for a “reparations loan” to Ukraine. Sanctioned Russian assets would not be permanently confiscated, and Ukraine would repay the loan only after Russia pays reparations.
Estimates put the EU reparations loan at €130–140 billion, with the final amount to be determined after IMF assessment of Ukraine’s funding needs in 2026–2027. Euroclear currently holds over €175 billion in frozen Russian cash that could back the new loan. Before approving it, the EU plans to repay the G7 loan to Ukraine of €45 billion ($50 billion) agreed last year, intended to be repaid from profits on frozen Russian assets.
