The European Commission has unveiled an ambitious plan to provide Ukraine with a €165 billion reparations loan, financed by the monetary value of frozen Russian state assets. The proposal, a copy of which was obtained by POLITICO, envisages the use of assets held in EU countries, primarily Belgium, where approximately €140 billion in Russian funds are held at the Euroclear clearing institution. Another €25 billion is frozen in private accounts across the Union.
This reparations loan is a key part of a broader financial package of up to 210 billion euros, which is intended to ensure that Kyiv can maintain its public finances and defence industry in the coming years. Without this support, Ukraine's budget would find itself in a critical state as early as next spring. Of the planned amount, 115 billion euros aimed at supporting the Ukrainian defence sector, 50 billion euros to cover budgetary needs and 45 billion euros is earmarked for the repayment of the loan granted to Ukraine by the G7 in 2024.
The proposal assumes that Ukraine would repay the loan only if Russia ended the war and paid war reparations – something that European institutions and most diplomats consider highly unlikely.
However, Belgium, where most of Russia's frozen state assets are held, is standing in the way of the plan's swift approval. Belgian Foreign Minister Maxime Prévot reiterated that his country only partially supports the project and considers the reparation loan option to be „the worst of all“. He emphasises in particular enormous financial and legal risks, which could have „potentially disastrous consequences“ for Belgium and other EU countries.
Belgium is particularly concerned about retaliatory measures by Russia against the Belgian state and Euroclear, which could face claims running into billions in the event of legal proceedings. It is therefore seeking three fundamental guarantees: full legal shared responsibility among Member States, protection and safeguards for Euroclear, as well as involvement of Russian assets frozen in other EU countries, not predominantly in Belgium.
According to Prévot, there are safer ways to finance Ukraine – for example traditional European loan on financial markets, which has been tried and tested over many years and is less politically risky. Despite its reservations, however, Belgium reiterates that it considers support for Ukraine to be essential. EU leaders will resolve the dispute over the form of financing at the December summit, where the final form of the emergency package will be decided.
gnews.cz - GH
English 
Czech 
Spanish 
French 
Italian 
Russian 
Chinese 
German