EU countries resist "blank check" for Belgium over Russian asset-backed loan

European governments have expressed reluctance to offer Belgium open-ended guarantees over a proposed €140 billion loan to Ukraine, which would be secured against frozen Russian state assets held on Belgian soil, according to Politico.

Belgian Prime Minister Bart De Wever has requested that EU countries provide financial cover exceeding the value of the frozen assets, payable within days, and lasting beyond the EU’s sanctions on Russia.

The move comes amid concerns about possible legal challenges from Moscow over the deployment of the assets.

While EU governments are reportedly open to guaranteeing a pre-agreed figure, they are wary of what they describe as a “blank check.” Four EU diplomats told Politico that they cannot accept De Wever’s request, as it could expose their countries to billions of euros in repayments years after the war in Ukraine ends.

“If [the guarantees] are infinite and without limits, then what are we getting ourselves into?” one diplomat said, speaking anonymously. Another added: “For many member states, it’s politically difficult to give this blank check.”

The European Commission is finalising a legal framework for the so-called reparations loan, aimed at ensuring Ukraine’s financial reserves do not run out by April. Commission President Ursula von der Leyen said on X on December 1: “We have made good progress, and we plan to table our legal proposals this week.”

The Commission has shared sections of the proposal with EU ambassadors to gain political support, though the specific amount of guarantees remains undecided. If agreement cannot be reached, EU officials say the most likely fallback would be issuing additional EU debt to support Ukraine — a measure that is politically sensitive as it would involve taxpayer money.

Speaking on the sidelines of a meeting of EU defence ministers, EU foreign policy chief Kaja Kallas acknowledged Belgium’s concerns without offering a solution: “I don’t diminish the worries that Belgium has, but we can address those, shoulder those and work on a viable solution.”

By Aghakazim Guliyev