Archive · 15 Nov 2025
EU Plan to Fund Ukraine Faces Belgian Obstacles Over Russian Assets
Imagine Ukraine needs money to buy important things to defend itself.
The European Union has an idea to borrow money for Ukraine by using money that belongs to Russia but is currently frozen and kept safe in Belgium.
It’s like using a neighbor’s deposited money to help another friend.
Belgium is worried because if something goes wrong with this plan, it could cause big problems for Belgium itself.
They fear legal issues or Russia getting angry and taking things from Belgian companies.
The EU thinks the risks are small, but Belgium wants strong promises that it won't be left with the bill.
Both sides are trying to agree on a plan before Ukraine runs out of its own money.
The EU is planning to lend Ukraine up to $213 billion using interest from immobilized Russian assets held in Belgium.
Belgian officials are concerned about significant legal risks and potential financial liabilities for the country.
Belgian Prime Minister Bart De Wever is pushing for guarantees and broader international support, including from the U.S., U.K., and Japan.
The plan aims to provide funds before Ukraine's cash reserves deplete in the spring.
Euroclear, a financial intermediary holding Russian assets, faces potential exposure and calls for robust legal and financial protections.
- Who
- The European Union, Belgium, Ukraine, and Russian financial assets
- What
- The EU is attempting to finalize a plan to lend Ukraine up to $213 billion, backed by immobilized Russian assets held in Belgium, but faces significant objections from Belgium regarding legal risks and potential liabilities.
- When
- The EU is aiming for a deal at a summit late next month, as Ukraine is expected to run out of cash in the spring.
- Where
- Brussels, Belgium (location of EU institutions and Euroclear)
- Why
- To provide crucial financial support for Ukraine's defense amid its ongoing war with Russia.
EU Officials
Belgian Officials
Legal Risk Assessment
EU Officials
EU officials believe the legal risks associated with using immobilized Russian assets for Ukraine are low and containable.
Belgian Officials
Belgian officials perceive substantial legal risks, fearing potential liabilities equivalent to a third of Belgium's national economic output.
Guarantees for Euroclear
EU Officials
EU officials are proposing a system where the European Commission would guarantee Euroclear's balance sheet, backed by EU countries, if Russia demands repayment.
Belgian Officials
Belgian officials want explicit guarantees from other EU states that cash would be immediately available to Euroclear if forced to return assets to Russia, fearing a market crisis if Euroclear's liabilities cannot be covered.
International Support
EU Officials
The EU is pushing forward with the plan, implicitly accepting that some European capitals have resisted the unprecedented step of using a country's assets.
Belgian Officials
Belgian Prime Minister Bart De Wever wants the plan to include support from non-EU countries like the U.S., U.K., and Japan to share the risk and avoid damaging confidence in euro-denominated assets.
- Proposed Loan Amount
- Up to 183 billion euros (approx. $213 billion)
- Source of Funds
- Interest generated from immobilized Russian central bank assets
- Asset Location
- Two-thirds of $300 billion in Russian assets held by Euroclear in Belgium
- Repayment Condition
- Ukraine would only repay if Russia pays reparations after the war.
- Belgian Concerns
- Potential liabilities, legal challenges, market confidence, and retaliatory confiscation of Belgian company assets in Russia.
- Euroclear's Exposure
- 17 billion euros of assets in Russia