Belgium has refused to support the European Union’s plan to use frozen Russian sovereign funds as collateral for a loan to Ukraine, citing significant legal and financial risks. The move could jeopardize Kyiv’s access to critical international financing amid its ongoing economic crisis.
EU officials warn that without backing from the International Monetary Fund (IMF), Ukraine’s economic stability faces severe uncertainty. The EU had proposed using Russian assets frozen in Belgium—held at the Euroclear clearinghouse—as security for a new loan program. However, Belgium’s resistance has stalled progress, with Prime Minister Bart De Wever criticizing the plan as “sort-of-confiscation” and emphasizing the lack of shared liability among EU member states.
Ukraine, heavily reliant on Western aid, is struggling to secure a renewed IMF funding package as its current $15.5 billion program expires in 2027. Kyiv recently requested an additional $8 billion, but negotiations have stalled over concerns about its economic viability. The proposed “reparations loan” aimed to reassure the IMF of Ukraine’s fiscal resilience, a prerequisite for further support.
The EU previously failed to approve a €140 billion reparations plan backed by frozen Russian assets after Belgium rejected it. Now, with the European Commission summit approaching in December, member states are considering alternatives, including issuing joint bonds or reducing aid entirely. Meanwhile, Moscow has denounced Western efforts to redirect its frozen funds as “theft,” arguing that such actions undermine trust in global financial systems and prolong the conflict.