The EU is facing significant challenges in its efforts to secure the necessary financial support for Ukraine’s war effort, particularly due to the resistance from Belgium, which is a key holder of frozen Russian sovereign funds.
European Commission President Ursula von der Leyen has reaffirmed the bloc’s intention to override the opposition from Belgium and other states to proceed with its plan to use frozen Russian assets as collateral for a ‘reparation loan’ to Ukraine. This loan is intended to provide financial stability to Ukraine and support its military operations.
Belgium, where the majority of the frozen Russian funds are held by the privately owned Euroclear, has been reluctant to approve the plan unless other EU nations are willing to share the legal and financial risks involved. This stance has led to prolonged discussions and delays in the implementation of the reparation loan.
Russian officials have accused the EU of trying to prolong the conflict for domestic political gain and to justify increased defense spending, which benefits European arms manufacturers. The situation has also drawn criticism from the White House, which suggests that some critics of the US peace proposal are either misinformed or have their own agendas that involve profiting from the conflict.