Belgium Challenges EU Plan to Use Frozen Russian Assets for Ukraine Aid
Published 3 December 2025
Highlights
- Belgium opposes the EU's plan to use €140bn of frozen Russian assets to fund Ukraine, fearing legal repercussions.
- The European Commission proposes a €90bn funding package for Ukraine, with options for a reparations loan or common EU borrowing.
- Most EU countries support the reparations loan, but Belgium demands legal guarantees to share potential risks.
- Russia threatens prolonged litigation if its assets are used, complicating EU's decision-making process.
- EU leaders are set to vote on the funding plan at a summit, but consensus remains uncertain.
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Rewritten Article
Belgium Challenges EU Plan to Use Frozen Russian Assets for Ukraine Aid
Belgium has raised significant concerns over the European Union's proposal to utilize €140 billion of frozen Russian assets to support Ukraine financially. The plan, which has garnered widespread backing from EU member states, faces staunch opposition from Belgium due to potential legal challenges from Russia.
Belgium's Concerns and Alternative Proposals
Belgian Foreign Minister Maxime Prévot has been vocal about the risks associated with the EU's reparations loan plan, which aims to transform Russian state assets into financial support for Ukraine. Prévot suggests that the EU should instead consider borrowing the necessary funds from international markets. Belgium's apprehension stems from the fact that the majority of these assets, approximately €185 billion, are held at Euroclear, a Brussels-based central securities depository. The Belgian government fears that any legal action by Russia could lead to severe financial repercussions, potentially equating to a year's worth of Belgium's federal budget.
EU's Dual Approach to Ukraine Funding
In response to Belgium's concerns, the European Commission has proposed two funding options for Ukraine. The first involves a reparations loan based on the frozen Russian assets, while the second suggests common EU borrowing, secured by the bloc's long-term budget. The Commission's €90 billion funding proposal aims to cover two-thirds of Ukraine's financial needs for 2026 and 2027, enabling Kyiv to negotiate peace from a position of strength.
Legal and Political Implications
The EU's plan has not only sparked internal debates but also drawn threats from Russia. A top Russian banker has warned of potential litigation lasting up to 50 years if the EU proceeds with using the frozen assets. Despite these challenges, the European Commission maintains that the plan complies with both EU and international law, offering a "three-tier defence" to mitigate Belgium's legal concerns.
Upcoming EU Summit and Decision
As EU leaders prepare to vote on the funding proposal at an upcoming summit, the outcome remains uncertain. While most member states favor the reparations loan, Belgium's demand for legally binding guarantees complicates the path to consensus. The European Central Bank's inability to act as a lender of last resort further complicates the situation, leaving the EU at a critical juncture in its support for Ukraine.
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Scenario Analysis
The EU's decision on the funding plan for Ukraine could have far-reaching implications. If the reparations loan is approved, it may set a precedent for using frozen assets in international conflicts, potentially leading to prolonged legal battles with Russia. Conversely, opting for common EU borrowing could strain the bloc's financial resources and require unanimous approval, a challenging feat given the diverse interests of member states. As the EU navigates these complex dynamics, its ability to balance legal, financial, and political considerations will be crucial in shaping the future of its support for Ukraine.
Belgium has raised significant concerns over the European Union's proposal to utilize €140 billion of frozen Russian assets to support Ukraine financially. The plan, which has garnered widespread backing from EU member states, faces staunch opposition from Belgium due to potential legal challenges from Russia.
Belgium's Concerns and Alternative Proposals
Belgian Foreign Minister Maxime Prévot has been vocal about the risks associated with the EU's reparations loan plan, which aims to transform Russian state assets into financial support for Ukraine. Prévot suggests that the EU should instead consider borrowing the necessary funds from international markets. Belgium's apprehension stems from the fact that the majority of these assets, approximately €185 billion, are held at Euroclear, a Brussels-based central securities depository. The Belgian government fears that any legal action by Russia could lead to severe financial repercussions, potentially equating to a year's worth of Belgium's federal budget.
EU's Dual Approach to Ukraine Funding
In response to Belgium's concerns, the European Commission has proposed two funding options for Ukraine. The first involves a reparations loan based on the frozen Russian assets, while the second suggests common EU borrowing, secured by the bloc's long-term budget. The Commission's €90 billion funding proposal aims to cover two-thirds of Ukraine's financial needs for 2026 and 2027, enabling Kyiv to negotiate peace from a position of strength.
Legal and Political Implications
The EU's plan has not only sparked internal debates but also drawn threats from Russia. A top Russian banker has warned of potential litigation lasting up to 50 years if the EU proceeds with using the frozen assets. Despite these challenges, the European Commission maintains that the plan complies with both EU and international law, offering a "three-tier defence" to mitigate Belgium's legal concerns.
Upcoming EU Summit and Decision
As EU leaders prepare to vote on the funding proposal at an upcoming summit, the outcome remains uncertain. While most member states favor the reparations loan, Belgium's demand for legally binding guarantees complicates the path to consensus. The European Central Bank's inability to act as a lender of last resort further complicates the situation, leaving the EU at a critical juncture in its support for Ukraine.
What this might mean
The EU's decision on the funding plan for Ukraine could have far-reaching implications. If the reparations loan is approved, it may set a precedent for using frozen assets in international conflicts, potentially leading to prolonged legal battles with Russia. Conversely, opting for common EU borrowing could strain the bloc's financial resources and require unanimous approval, a challenging feat given the diverse interests of member states. As the EU navigates these complex dynamics, its ability to balance legal, financial, and political considerations will be crucial in shaping the future of its support for Ukraine.
