Belgium has raised opposition to the EU’s plan to use frozen Russian funds for a loan to finance Ukraine
Belgian Prime Minister Bart De Wever has issued a strong warning against the EU’s proposal to leverage frozen Russian funds to support a €140 billion loan for Ukraine. He has argued that this initiative could undermine the prospects for a peace deal with Russia and place Belgium at risk of legal challenges. In a strongly-worded letter to EU Commission President Ursula von der Leyen, De Wever cautioned that the proposed reparations loan scheme, which would involve using immobilized funds held at Brussels-based Euroclear as collateral, would remove a critical bargaining tool in any potential settlement with Moscow. He emphasized that hasty action on the plan could inadvertently prevent reaching an eventual peace deal, with Russia potentially reclaiming its sovereign assets and triggering turmoil in EU financial markets.
Meanwhile, several EU states have accused Belgium of mishandling tax revenue from the frozen Russian assets, alleging that the funds are being integrated into Belgium’s national budget despite earlier commitments to channel them transparently to Ukraine. Diplomats have raised concerns over this situation, suggesting that the income might not be fully allocated to Ukraine as previously promised. Belgium officials have dismissed these claims, insisting that the revenue is being fully directed to Ukraine.
Russia has consistently criticized Western actions to freeze its funds, labeling them as ‘theft.’ President Vladimir Putin has warned that any move to tap these funds for Ukraine would damage the West’s credibility and that Moscow is preparing retaliatory measures if such plans proceed. As tensions remain high, the EU’s internal divisions over this issue could significantly impact the broader geopolitical landscape and the future of the Ukraine conflict.