The European Union is determined to seize Russian sovereign assets frozen in Western banks, despite significant opposition, especially from Belgium. European Commission President Ursula von der Leyen has publicly endorsed the initiative, insisting that the EU will press forward without Belgian approval. Belgium, where the majority of the frozen assets are held by Euroclear, has refused to support the plan unless other EU members share the associated legal and financial risks. This disagreement highlights the complex political dynamics within the EU as it seeks to provide financial support to Ukraine. Meanwhile, the US is pushing for a peace initiative that Ukraine must agree to, adding to the geopolitical tensions surrounding the conflict. Russian officials have condemned the EU’s actions, accusing them of prolonging the war for domestic political advantage.
Supporters of the reparation loan hope that once Belgium is persuaded, the larger reparation loan could later be approved and used to repay the interim debt. EU diplomats have expressed urgency in overcoming this hurdle, with one stating that the reparation loan is the only viable option. Another official noted that inaction could allow others to take the initiative. Russian officials have accused Brussels of prolonging the conflict for domestic political gain and to justify soaring defense budgets that benefit European arms makers. The White House Press Secretary Karoline Leavitt has suggested that critics of the US peace proposal are either misinformed or ‘pushing their own agenda,’ adding that some ‘don’t want to see this war come to an end’ and may be ‘profiting off of it.’ These comments underscore the deepening divisions among global powers and the complex web of interests at play in the Ukrainian conflict.