FT: Belgium faces pressure over frozen Russian assets for Ukraine loan

Belgium is under growing pressure to allow the use of frozen Russian assets for a €140bn “reparations loan” to Ukraine after several Western capitals, including Berlin, shifted their position, according to the latest report by the Financial Times.

About €190bn in Russian sovereign assets are held at Euroclear in Brussels, frozen since Russia’s 2022 invasion of Ukraine. 

While many nations were previously reluctant to access the funds due to legal and financial risks, recent calls by the US and Germany to use the assets to support Ukraine have altered the debate.

Chancellor Friedrich Merz proposed in a Financial Times op-ed that €140 billion be used as a loan to arm Ukraine, with the European Commission outlining how such a loan could be structured, arguing that Moscow should bear the costs of President Putin’s war.

Belgian Prime Minister Bart De Wever has requested that the other 26 EU countries share legal and financial risks, guaranteeing the full amount to prevent Belgium from being liable. His stance has drawn criticism from other capitals, especially given Euroclear’s profits are taxed in Belgium. EU diplomats have expressed frustration, pointing to the solidarity shown by Poland and Denmark in supporting Ukraine without such conditions.

The European Commission has sought to address Belgium’s concerns by including a provision for national contingent liabilities if Russia begins paying reparations, stressing that the loan structure does not constitute asset confiscation. EU officials argue the risks for Belgium are manageable, while the Belgian government maintains the current plan does not adequately address risk coverage.

The EU aims to finalise the €140bn loan by December, with initial disbursements planned for the second quarter of 2026.

Since 2022, Belgium has collected €3.6bn in taxes on profits from Russian assets, earmarked entirely for supporting Ukraine.

De Wever defended keeping €1 billion in tax revenues as a buffer against potential risks, a position that has caused friction with other EU leaders, given Belgium’s comparatively low military support for Ukraine.

By Tamilla Hasanova