EU’s Ukraine Loan Plan Using Russian Assets Risks Backfiring on Belgium, Says Prime Minister

Belgian Prime Minister Bart De Wever has warned that the EU plan to use profits from immobilized Russian assets to finance a large “reparations loan” for Ukraine is fundamentally flawed and risks leaving Belgium to absorb most of the downside, Euractiv reported on November 28.

In a four-page letter to European Commission President Ursula von der Leyen, seen by Euractiv, De Wever said the proposal could damage the reputation of Euroclear, the Brussels-based clearing house that holds about $214 billion in Russian state assets, while benefits would be shared across the bloc. He argued that it is neither fair nor sustainable for Belgium to carry the legal and financial risks alone.

De Wever also complained that the European Commission has yet to present a concrete legal text and said an internal “options paper” did not resolve Belgium’s concerns. He reiterated Brussels’ conditions: EU states should jointly guarantee liquidity if sanctions on Russia are lifted, share responsibility for any lawsuits, and ensure other Western countries holding Russian assets adopt similar schemes.

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Echoing warnings from the European Central Bank, De Wever said the plan could prompt investors to pull money from Euroclear and EU markets, amplifying systemic risks for the euro. As an alternative, he urged EU governments to prioritize unused funds from the current EU budget for Ukraine, according to Euractiv.

He also cautioned that rushing ahead with the asset-based loan could complicate future peace talks, arguing the EU must choose between keeping Russian assets immobilized for postwar reconstruction or deploying them now to support Ukraine’s war effort, but not trying to do both at once.

Previously, it was reported that European Union leaders have postponed a final decision on whether to use profits from frozen Russian central bank assets to finance aid for Ukraine. The issue will now be revisited in December after Belgium raised concerns about potential financial liability tied to the $163 billion loan plan.

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