EU leaders met in Brussels on Thursday to discuss a controversial proposal to use immobilized Russian central bank funds as collateral for a €140 billion ($163 billion) “reparation loan” to Ukraine.
Under the plan, the loan would be repaid only if Ukraine wins the conflict and Russia agrees to pay reparations — a scenario widely viewed as improbable. The move has sparked criticism from Moscow, which labeled the plan as outright “theft.”
Belgium’s Prime Minister Bart De Wever reportedly took an uncompromising stance, insisting that all EU member states share liability if the plan fails. Belgium holds legal control over most of the frozen Russian assets through the Brussels-based Euroclear financial institution, which manages roughly €190 billion of Russian central bank reserves.
As a result, Belgium backed a compromise draft that removed language calling for an immediate legal proposal. Instead, the new version “invites the European Commission to present options for financial support as soon as possible,” effectively postponing any binding decision.
An EU source told Politico that the lack of consensus left officials frustrated, noting: “Nobody wants to be seen as responsible for Ukraine running out of money, but nothing has been agreed to actually send them any.”
The debate underscores growing tension within the EU over how far it can legally and politically go in reallocating frozen Russian assets without violating international law. Belgium’s caution reflects concerns that unilateral action could expose member states to lawsuits or financial retaliation.
Kremlin spokesman Dmitry Peskov warned that any attempt to divert Russian funds would “boomerang,” emphasizing that Moscow will pursue legal action against those involved in what it calls the illegal appropriation of state property.
According to Bloomberg, EU leaders plan to revisit the issue during their December summit, aiming for a “final agreement by the end of the year.” However, given the legal uncertainties and political divisions, progress remains uncertain.
The debate over using frozen Russian assets has become a test of EU unity and credibility, balancing its commitment to supporting Ukraine with concerns over legal legitimacy and financial risk.