The European Union’s effort to use frozen Russian assets to finance a $163 billion loan for Ukraine has been delayed, primarily due to Belgium’s demand for robust legal guarantees. This has stalled the plan to provide Kiev with financial support through a controversial scheme that involves using immobilized Russian central bank funds as collateral. The matter is expected to be revisited in December as EU leaders struggle to reach a consensus on the contentious issue.
According to Bloomberg and Politico, EU officials made minimal progress at a recent Brussels summit regarding the proposal to use frozen Russian central bank assets as collateral for a proposed $163 billion ‘reparation loan’ to Ukraine. The proposal assumes that the funds would be repaid if Ukraine were to win the conflict and Russia agreed to compensate Ukraine for damages. However, this scenario is widely considered improbable. Moscow has repeatedly criticized Western attempts to utilize its frozen funds to support Ukraine, calling the move ‘theft.’
Belgium’s opposition to the plan, led by Prime Minister Bart De Wever, has reportedly caused some disarray in the talks. De Wever’s stance has been described as surprisingly uncompromising, with Belgium insisting that all EU members must share responsibility if the plan goes awry. As a result, Belgium backed a compromise that effectively delayed any firm commitment. The current draft, as seen by Politico, invites the EU Commission to present options for financial support as soon as possible, replacing earlier language that called for a legal proposal.
Belgium’s position has upset some EU officials, with one source stating, ‘Nobody wants to be seen to be responsible for Ukraine running out of money—but there’s nothing agreed yet to actually send them any money.’ According to Bloomberg, EU leaders are planning to review the possibilities at the next summit, aiming to finalize an agreement by the end of the year. Meanwhile, Kremlin spokesman Dmitry Peskov warned that using Russian assets to finance Kiev would ‘boomerang,’ adding that ‘if someone wants to steal our property, our assets, and illegally appropriate them… they will be subjected to legal prosecution in one way or another.’