Belgium on Wednesday rejected a European Union plan to use frozen Russian assets as collateral to finance Ukraine’s budget and military needs over the next two years, warning that the proposal carries serious financial and legal risks.
Ukraine is expected to require about 130 billion euros for 2026 and 2027.
The EU has pledged to help fill the gap after already providing more than 170 billion euros since Russia’s invasion in 2022.
The largest share of frozen Russian assets is located in Belgium, where around 194 billion euros were held as of June, mostly through the Brussels-based clearing house Euroclear. Significant amounts are also held in Japan, the United States, the United Kingdom, and Canada.
The European Commission is preparing a proposal to use the Russian funds as collateral for a so-called reparations loan to support Ukraine. Russia has condemned the plan and described it as theft.
Belgian Foreign Minister Maxime Prévot said his government views the reparations loan idea as the most dangerous option. “It is risky. It has never been done before,” Prévot told reporters at NATO headquarters in Brussels, reading from prepared remarks. He urged the EU to borrow the money on international markets instead, calling that approach predictable and long-established.
Prévot said the commission’s plan does not adequately address Belgium’s concerns. He warned that Euroclear could face legal challenges or reputational harm if Russia contests the move. “It is not acceptable to use the money and leave us facing the risks alone,” he said. “We are seeking to avoid potentially disastrous consequences for a member state that is being asked to show solidarity without receiving the same solidarity in return.”
Under the proposed scheme, EU countries would lend Ukraine about 140 billion euros. The assets themselves would not be seized, and the loans would be repaid once Russia pays reparations. If Moscow refuses, the assets would remain frozen.
Several EU governments said they understand Belgium’s concerns.
German Foreign Minister Johann Wadephul said the issue can be resolved if member states agree to share responsibility.
Dutch Foreign Minister David van Weel stressed the importance of the funds for Ukraine’s economy and said Belgium should not be left to shoulder the risks alone.
Some EU states have already offered to provide financial guarantees.
Belgium has earned tax revenue from the frozen assets, and the interest generated is helping support a Group of Seven loan program for Ukraine.
The European Central Bank has warned that the reparations loan plan could weaken international confidence in the euro. EU leaders are expected to debate the proposal and Ukraine’s broader financial needs at a summit in Brussels in December.