Belgium faces EU pressure to release Russian reserves to Kyiv

Frustration is mounting among European Union member states as Belgium faces increasing pressure to release €140 billion in frozen Russian reserves held in Brussels. Diplomats from multiple EU countries have accused Belgian Prime Minister Bart De Wever’s government of failing to fully disclose how it handles the tax revenue generated from these immobilized assets, POLITICO reports.

The European Commission aims to have the 27 EU countries agree to channel the frozen Russian funds as a reparations loan to Kyiv at a European Council meeting scheduled for December 18, as part of efforts to support the Ukrainian economy. However, Prime Minister De Wever has resisted, arguing that Belgium could be held liable if Moscow were to successfully reclaim the billions.

Five diplomats from different EU countries told POLITICO that Belgium appears to have a secondary motive for retaining Russia’s money, pointing to the corporate tax revenue it generates. They said Belgium is breaking an international commitment made last year to disclose how the tax income from the frozen reserves is being used to support Ukraine. The diplomats noted that the funds are still being incorporated into Belgium’s national budget, making it difficult to determine whether Belgium is fully honoring its pledges to Kyiv.

“In light of this ongoing foot-dragging behavior, one wonders whether it has actually been understood that it’s Europe’s security which is at stake here,” a senior EU diplomat said. “And in view of the data, there are doubts as to whether Belgium is delivering on its promise to send its windfall tax gains to Ukraine.”

Estimates from sources such as the Kiel Institute suggest Belgium’s total commitment to Ukraine from the start of the war to August 31, 2025, stands at €3.44 billion, compared with €1.7 billion generated from taxes on the Russian assets in 2024 alone.

Belgium has rejected the criticisms, insisting that all corporate tax revenue from interest earned on the frozen Russian reserves at Euroclear is earmarked for Ukraine. “The Belgian government has committed to allocating all corporate tax revenue from the interest income on Russia’s immobilized assets at Euroclear to support Ukraine,” a Belgian official said. “For 2025, this revenue is currently estimated at around €1 billion.”

The government also stressed that Belgian federal funding beyond the tax on Russian assets has contributed to Ukraine. “In addition to the full use of the corporate tax on the windfall profits, which is fully used for military support to Ukraine, the Belgian federal government has provided since 2022 roughly just under 1 billion euros in military and other support to Ukraine,” the official said.

The tax, levied at 25 percent on profits generated from interest on the Russian holdings, is used for military-related aid—including hardware and training—as well as limited civilian assistance, such as ambulances, the Belgian government said.

Belgium’s EU partners have expressed particular frustration because the issue of transparency was meant to be resolved last year. In 2024, several Western countries accused Belgium of using part of the tax revenue from the frozen assets to cover regular budgetary needs. In response, the previous Belgian government pledged to transfer the tax income to an EU and G7 financial instrument for Ukraine. However, Belgium never implemented the mechanism and has not explained why.

“The tax revenue was already part of their domestic budget, and they didn’t want to give it up,” a senior EU diplomat said, summarizing the concerns of Belgium’s allies.

As tensions rise ahead of the December 18 European Council meeting, the lack of clarity over Belgium’s handling of the frozen Russian assets threatens to complicate a unified EU response in support of Ukraine.

By Vafa Guliyeva