What's happened
As of December 11, 2025, the EU faces internal divisions over a €90 billion 'reparations loan' to fund Ukraine's 2026-27 budget using frozen Russian assets, mainly held in Belgium's Euroclear. Belgium opposes the plan, fearing legal and financial risks, demanding risk-sharing guarantees. The European Commission, led by Ursula von der Leyen, insists the plan is crucial for Ukraine's defense and peace leverage, while Russia condemns it as theft.
What's behind the headline?
EU's Financial Dilemma and Political Fractures
The EU's plan to use frozen Russian assets as collateral for a reparations loan to Ukraine exposes deep fissures within the bloc, particularly Belgium's staunch opposition. Belgium's concerns about bearing disproportionate legal and financial risks stem from its unique position as the custodian of the majority of these assets via Euroclear. This resistance threatens the unity and solidarity that underpin EU membership.
Legal and Financial Risks
Belgium fears potential lawsuits from Russia could leave it liable for billions, risking Euroclear's stability and the broader European financial market's reputation. Despite the Commission's assurances of risk-sharing mechanisms and legal safeguards, Belgium demands binding guarantees from other member states, highlighting trust deficits within the EU.
Geopolitical Stakes
The EU's move aims to sustain Ukraine's defense and strengthen its negotiating position in peace talks, signaling to Moscow that prolonging the war carries escalating costs. Russia's vehement denunciation of the plan as theft and threats of retaliation underscore the high geopolitical stakes.
Political Obstacles
Hungary's Kremlin-friendly stance and veto threats complicate unanimous EU agreement, pushing the Commission to consider qualified majority voting to bypass dissenters. However, this risks further alienating member states and undermining EU cohesion.
Forecast and Consequences
Without a consensus, Ukraine risks running out of funds by early 2026, imperiling its war effort and Europe's strategic interests. The EU faces a choice between risking internal division or escalating financial exposure. The outcome will shape the bloc's credibility, unity, and influence in the ongoing conflict and future geopolitical landscape.
What the papers say
Politico's Bjarke Smith-Meyer reports Chancellor Friedrich Merz's urgent diplomatic efforts to persuade Belgian Prime Minister Bart De Wever, highlighting Belgium's demand for "ironclad financial guarantees" due to fears of Russian retaliation and legal exposure. The Moscow Times quotes Russian officials condemning the plan as "theft" and warning of "far-reaching consequences," emphasizing Moscow's hostile stance. The Independent details Belgium's legal concerns, with Foreign Minister Maxime Prévot stating, "It would mean bankruptcy for Belgium," and underscores the risk of undermining peace negotiations. France 24 provides context on the EU's legal proposals and the Commission's attempt to address Belgium's concerns through a "three-tier defence" and risk-sharing among member states. Reuters outlines the complex EU mechanisms proposed, including emergency powers to override vetoes from Kremlin-friendly countries like Hungary and Slovakia. These contrasting perspectives reveal a bloc grappling with legal, financial, and political challenges while balancing support for Ukraine against internal cohesion and risk management.
How we got here
Following Russia's 2022 invasion of Ukraine, the EU froze approximately €210 billion in Russian assets, mostly cash held in Euroclear, Brussels. To support Ukraine's war effort and basic services, the European Commission proposed using these frozen assets as collateral for a €90 billion loan, repayable only if Russia compensates Ukraine. Belgium, holding most assets, resists due to legal and financial risks, demanding shared liability from other EU states.
Go deeper
- Why is Belgium opposing the EU's reparations loan plan?
- What legal risks does Belgium face with the frozen Russian assets?
- How might this dispute affect Ukraine's funding and the EU's unity?
Common question
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Why is Belgium warning against using Russian assets for Ukraine?
Belgium's opposition to the EU's plan to seize Russian assets to fund Ukraine raises important questions about legality, risks, and the potential impact on peace negotiations. Many wonder why Belgium is so cautious and what this means for the broader conflict. Below, we explore the key issues surrounding this controversial proposal and what it could mean for global stability.
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Why is Belgium Opposing the Use of Russian Assets for Ukraine?
The debate over using frozen Russian assets to fund Ukraine has sparked significant divisions within the EU. Belgium, in particular, has voiced strong opposition, citing legal and financial risks. Understanding Belgium's stance and the broader implications helps clarify the complex politics behind EU support for Ukraine. Below, we explore the key questions surrounding this contentious issue.
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Why is Belgium Opposing the EU Plan to Use Russian Assets for Ukraine?
The European Union is debating whether to use frozen Russian assets to fund Ukraine's recovery, but Belgium has voiced strong opposition. This dispute raises questions about legal risks, financial stability, and the future of EU support for Ukraine. Below, we explore the key issues and what they mean for Europe’s response to the Ukraine conflict.
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What Are the EU and US Doing About Russia and Ukraine?
The ongoing conflict between Russia and Ukraine has prompted varied responses from the EU and the US. While some countries push for strong sanctions and asset freezes, others raise concerns about legal risks and financial stability. This page explores the different positions, responses, and potential consequences of these international actions, helping you understand the complex geopolitical landscape today.
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Why Is the EU's Plan to Use Frozen Russian Assets to Fund Ukraine Stalled?
The EU's attempt to leverage frozen Russian assets for Ukraine's funding faces significant hurdles, mainly from Belgium's concerns over legal and financial risks. This has led to a deadlock ahead of the December 18 summit. Many are asking: what exactly is causing the delay, and what are the potential consequences? Below, we explore the key questions surrounding this complex issue.
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Why is Belgium blocking the EU plan to use Russian assets?
The EU's plan to use frozen Russian assets to fund Ukraine has sparked a major debate, with Belgium leading opposition. Many wonder why Belgium is so resistant and what risks are involved. Below, we explore the key questions surrounding this controversial move, including legal concerns, potential benefits for Ukraine, and the broader geopolitical implications.
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What’s the bigger picture behind today’s EU-Russia and China tensions?
Today’s headlines highlight rising tensions between the EU, Russia, and China, raising questions about global stability and future conflicts. From Belgium’s resistance to EU plans involving Russian assets to Macron’s warnings to China, these issues are interconnected and could have far-reaching consequences. Here’s a closer look at what’s really happening and what it means for the world.
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Could the EU change its approach to Russian assets?
The EU's plan to use frozen Russian assets to fund Ukraine has sparked intense debate among member states and international observers. While some see it as a necessary step for justice and support, others fear legal and financial repercussions. Curious about what might happen next? Below, we explore key questions about the future of EU sanctions and asset seizures, including potential legal challenges, international responses, and risks involved.
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Belgium, officially the Kingdom of Belgium, is a country in Western Europe. It is bordered by the Netherlands to the north, Germany to the east, Luxembourg to the southeast, France to the southwest, and the North Sea to the northwest.
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The European Union is a political and economic union of 27 member states that are located primarily in Europe. Its members have a combined area of 4,233,255.3 km² and an estimated total population of about 447 million.
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Ukraine is a country in Eastern Europe. It is the second-largest European country after Russia, which borders it to the east and northeast.
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Bart Albert Liliane De Wever is a Belgian politician. Since 2004 De Wever has been the leader of the New Flemish Alliance, a Belgian political party advocating independence for the Flemish region of Belgium within the European Union; he is also a member o
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Euroclear, or the Euroclear Group, is a Belgium-based financial market infrastructure group that specialises in the central securities depository segment.
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The European Commission is the executive branch of the European Union, responsible for proposing legislation, implementing decisions, upholding the EU treaties and managing the day-to-day business of the EU.
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Vladimir Vladimirovich Putin is a Russian politician and former intelligence officer who has served as President of Russia since 2012, previously holding the position from 1999 until 2008.
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Dmitry Anatolyevich Medvedev is a Russian politician who has served as prime minister of Russia between 2012 and 2020. From 2008 to 2012, Medvedev served as president of Russia.
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Friedrich Merz is a German lawyer and politician. A member of the Christian Democratic Union, he served as a Member of the European Parliament from 1989 to 1994 and was elected to the Bundestag from 1994 until 2009, where he chaired the CDU/CSU parliament
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Hungary is a country in Central Europe. Spanning 93,030 square kilometres in the Carpathian Basin, it borders Slovakia to the north, Ukraine to the northeast, Romania to the east and southeast, Serbia to the south, Croatia and Slovenia to the southwest, a
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