The European Commission has offered Belgium extensive guarantees in order to secure approval for a controversial reparations loan for Ukraine, despite warnings that the plan could have “disastrous” financial consequences for Belgium.
The proposal uses profits from frozen Russian central bank assets—mostly held in Belgium’s Euroclear—as a zero-interest credit line for Kyiv, to be repaid only once Russia agrees to pay war damages.
Belgium remains strongly opposed, insisting the guarantees are insufficient to protect it from potential Russian retaliation, legal risks, or the loss of more than €185 billion in frozen assets. Belgian officials argue they are being asked to shoulder excessive risks without adequate solidarity from other European Union member states.
Ursula von der Leyen says the scheme is essential to ensure Ukraine has the resources to defend itself and negotiate from strength, but acknowledges that if Belgium blocks the plan, the EU may instead rely on joint borrowing—an option that most of its member states reject.
The fate of the frozen assets is also tied to ongoing U.S.-Russia-Ukraine negotiations. Belgium warns that misusing the assets now could harm future peace talks and ultimately leave European taxpayers liable. EU leaders aim to reach a deal before the mid-December summit, which is crucial for unlocking further International Monetary Fund support for Ukraine.
