What's happened
As of October 24, 2025, EU leaders have postponed a decision on a €140 billion loan to Ukraine, secured against frozen Russian central bank assets held mainly in Belgium. Belgium demands legal guarantees against liability risks, delaying approval. The European Commission will draft financing options for the next summit. Ukraine urgently needs funds for 2026-27 amid ongoing conflict.
What's behind the headline?
Legal and Political Hurdles
Belgium's insistence on legal guarantees reflects deep concerns about potential lawsuits from Russia, given the assets are held in Brussels. This legal uncertainty stalls the loan plan despite broad EU support.
EU Solidarity and Risk Sharing
The proposal hinges on collective EU risk-sharing, with G7 countries expected to underwrite potential liabilities. This marks a shift towards deeper financial solidarity within the bloc, especially as Germany and France have softened previous opposition.
Strategic Implications
The loan would provide Ukraine with critical funding for 2026-27, sustaining its defense and reconstruction efforts. However, delays risk undermining Kyiv's financial stability.
Geopolitical Context
The EU's move aligns with intensified sanctions from the US and EU against Russia, including targeting Russian oil majors. Russia condemns these measures as illegal and retaliatory.
Forecast
The European Commission's upcoming detailed proposal will be decisive. If legal safeguards satisfy Belgium and other skeptics, the EU will likely approve the loan by December, reinforcing support for Ukraine and signaling EU unity against Russian aggression.
What the papers say
Alberto Nardelli in The Japan Times reports that talks stalled primarily due to Belgium's demand for assurances against liability risks linked to the €140 billion loan, with EU leaders tasking the European Commission to draft financing options for the next summit. The South China Morning Post highlights Belgium's fears of costly legal challenges and quotes Belgian Prime Minister Bart De Wever warning he would block the plan without guarantees. European Council President Antonio Costa emphasized the EU's commitment to Ukraine's financial needs and noted the proposal aligns with European and international law. Al Jazeera's coverage adds that while there is broad support, Belgium remains cautious, and some EU countries want the funds spent on European arms manufacturers. It also details new EU sanctions against Russia and US sanctions on Russian oil giants, underscoring the geopolitical backdrop. Politico confirms Belgium's hesitance and the complexity of legal details delaying approval. The Guardian provides context on the EU's internal dynamics, noting Germany's recent support for the loan and the role of G7 countries in underwriting risks, with UK Finance Minister Rachel Reeves discussing the plan at the IMF meeting. Together, these sources illustrate a complex negotiation balancing legal, political, and strategic factors, with Belgium's concerns central to the delay but broad EU and allied support pushing the plan forward.
How we got here
Following Russia's 2022 invasion of Ukraine, the EU froze about €200 billion of Russian central bank assets. The European Commission proposed a €140 billion interest-free loan to Ukraine, backed by these frozen assets, to support Kyiv's military and reconstruction needs. Belgium, hosting most assets via Euroclear, seeks legal assurances before approving the plan.
Go deeper
- What legal risks does Belgium fear with the frozen Russian assets?
- How will the EU share financial risks among member states?
- What impact will the loan have on Ukraine's defense capabilities?
Common question
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What’s the latest on using Russian assets to fund Ukraine?
European leaders are actively debating whether to unlock frozen Russian assets to support Ukraine’s needs in 2026-27. While some countries see this as a crucial step to aid Ukraine, others raise legal and political concerns. Here’s what you need to know about the ongoing discussions, risks involved, and what it could mean for Ukraine’s future funding.
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Why Did the EU Delay the €140B Ukraine Loan?
The EU's decision to delay a €140 billion loan to Ukraine has sparked many questions. With legal concerns from Belgium and geopolitical tensions at play, what's really happening behind the scenes? Here’s what you need to know about the delay, its impact, and what might happen next.
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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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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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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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