What's happened
As of December 5, 2025, the EU's plan to fund Ukraine's 2026-27 budget using a €90 billion reparations loan backed by frozen Russian assets faces strong opposition from Belgium. Belgium fears legal and financial risks, demanding guarantees from other EU states before supporting the plan. EU leaders aim to resolve the impasse at the December 18 summit amid ongoing Russian threats and stalled peace talks.
What's behind the headline?
EU's Frozen Assets Plan: A Legal and Political Quagmire
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Belgium's Central Role and Concerns: Belgium holds the majority of frozen Russian assets via Euroclear, making it pivotal. Its government fears unilateral liability if Russia sues, potentially bankrupting Belgium without shared EU guarantees.
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Legal Novelty and Risks: The reparations loan scheme is unprecedented, monetizing frozen assets without confiscation. This legal ambiguity fuels Belgium's resistance and Russia's threats of prolonged litigation.
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Geopolitical Stakes: The EU aims to pressure Russia by increasing war costs and bolstering Ukraine's negotiating position. However, internal EU divisions, especially Belgium's and Hungary's veto potential, complicate unified action.
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Financial Alternatives and Challenges: If the reparations loan fails, the EU may resort to common borrowing, which requires unanimity and faces opposition from fiscally cautious states like Hungary.
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Implications for EU Unity and Ukraine's Future: The deadlock risks delaying critical funding for Ukraine, weakening its defense and peace leverage. Belgium's stance highlights broader EU challenges in balancing legal prudence, financial solidarity, and geopolitical strategy.
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Forecast: Without legally binding risk-sharing guarantees, Belgium will likely maintain opposition, risking EU fragmentation on Ukraine aid. The December 18 summit is critical; failure to agree may force reliance on costlier borrowing or delay support, impacting Ukraine's war effort and peace prospects.
What the papers say
The Independent highlights Belgium's fears that it could face bankruptcy if Russia successfully challenges the EU's plan, quoting Belgian Foreign Minister Maxime Prévot: "It would mean bankruptcy for Belgium." It also reports Dmitry Medvedev's warning that seizing frozen assets could be a "casus belli." Al Jazeera explains the EU's reparations loan as a novel tactic to monetize frozen assets without confiscation, quoting Gregoire Roos of Chatham House calling it "quite a clever tactic" but "with no precedent." Politico details Chancellor Friedrich Merz's urgent diplomatic efforts to persuade Belgium's Prime Minister Bart De Wever, who demands "ironclad financial guarantees" before backing the plan. France 24 provides context on the EU's three-tier defense to protect Belgium and notes the plan's scaling back from €140 billion to €90 billion. The Guardian presents De Wever's strong opposition, describing the plan as "fundamentally wrong" and warning of systemic risks to the EU financial market, quoting him saying he will not sign off without guarantees. Reuters reports De Wever's analogy comparing the plan's risks to a plane crash: "the chances of a crash are low, but consequences disastrous." These sources collectively illustrate the tension between EU ambitions to fund Ukraine swiftly and Belgium's legal and financial caution, underscored by Russia's aggressive rhetoric and the complex EU political landscape.
How we got here
Following Russia's 2022 invasion of Ukraine, the EU froze approximately €290 billion in Russian assets, mostly held in Belgium's Euroclear. The European Commission proposed using these assets as collateral for a €90 billion loan to support Ukraine's military and services through 2027. Belgium opposes the plan, citing potential legal liabilities and financial risks if Russia challenges the scheme.
Go deeper
- What legal risks does Belgium fear from the frozen assets plan?
- How might Russia respond if the EU uses frozen assets for Ukraine?
- What alternatives does the EU have if the reparations loan fails?
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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What Are the Latest Developments in Sarkozy's Legal Case and European Political Tensions?
Recent events in Europe have brought high-profile legal battles and diplomatic tensions to the forefront. From Nicolas Sarkozy's conviction to the diplomatic fallout involving Boualem Sansal and the EU's financial strategies, these stories raise important questions about justice, politics, and international relations. Below, we explore the key questions and provide clear answers to help you understand these complex issues.
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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.
More on these topics
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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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Ursula Gertrud von der Leyen is a German politician and the president of the European Commission since 1 December 2019. She served in the federal government of Germany from 2005 to 2019 as the longest-serving member of Angela Merkel's cabinet.
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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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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 (CSD) segment. It traces its origins to the Euro-clear System developed in 1968 by Morgan Guaranty (a predece
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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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Russia, or the Russian Federation, is a transcontinental country located in Eastern Europe and Northern Asia. Covering an area of 17,125,200 square kilometres, it is the largest country in the world by area, spanning more than one-eighth of the Earth's in
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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.