POLITICO: Belgium demands extra EU cash buffer against Kremlin risks on Ukraine loan

Belgium is pressing the EU to create an additional cash buffer to protect against potential Kremlin retaliation over a proposed €210 billion loan to Ukraine, according to documents obtained by POLITICO.

The loan, intended to be financed using frozen Russian assets, would draw €185 billion from state assets held at Brussels-based financial depository Euroclear, with the remaining €25 billion sourced from private Russian accounts across the EU, primarily in France.

Belgium’s new demand aims to give Euroclear more financial capacity to withstand any Russian legal or financial pushback. The buffer would supplement guarantees that EU countries already provide, shielding Belgium from having to repay the loan in full if Moscow successfully reclaims the assets.

In proposed amendments to the European Commission’s plan, Belgium even suggested expanding guarantees to cover potential legal disputes and settlements — a move opposed by several other EU governments.

The demand comes ahead of an EU summit in Brussels on December 18, where leaders will discuss measures to ensure Ukraine can continue financing its defence. Kyiv’s war chest is projected to run out by April, and without the Russian assets, EU countries would face pressure to fund Ukraine directly — a prospect politically sensitive for fiscally cautious member states.

Belgium remains the main holdout on the plan, citing fears of being left liable if Moscow recovers its frozen funds.

By Khagan Isayev