POLITICO: Belgium at risk of EU isolation over Ukraine loan standoff

The European Union is weighing measures against Belgium over its objections to using frozen Russian assets to fund a €210 billion loan to Ukraine, POLITICO reports. The move could mirror EU actions taken against Hungary in the past.

Belgian Prime Minister Bart De Wever has been blocking the proposal, citing concerns that Belgium could be liable if the money needs to be repaid. Most of the frozen Russian assets are held in Euroclear, a financial depository in Brussels. De Wever has demanded additional financial safeguards, including a cash buffer on top of existing guarantees, to cover potential legal disputes and settlements — a proposal opposed by many EU governments.

Belgium has submitted a list of amendments to ensure it is not solely responsible for any repayment to Moscow if sanctions are lifted. De Wever has stated he will not support the loan unless his conditions are met.

EU diplomats are preparing for a summit on December 18, where persuading De Wever is expected to be a key task. Officials plan to review Belgium’s requests line by line, attempting to address the most pressing concerns. Diplomats warn, however, that if Belgium continues to block the plan, it risks being sidelined in EU decision-making — a scenario similar to Hungary under Viktor Orbán, whose refusal to implement sanctions on Russia led to the country being marginalised.

“This would be a harsh reality for a country at the heart of the EU project,” an EU diplomat said. Belgium could lose influence over the EU’s long-term 2028–2034 budget and see its proposals ignored.

The urgency stems from Ukraine’s projected €71.7 billion budget shortfall next year. Without the loan, Kyiv may have to begin cutting public spending in April. U.S. President Donald Trump has again signalled limited American support, heightening the stakes.

EU ambassadors are meeting multiple times this week to discuss the Commission’s loan proposal. Other funding options under consideration include EU-backed joint debt, though Hungary has ruled out issuing eurobonds, and a unanimous vote would be required to raise debt via the EU budget. Some diplomats are quietly exploring whether individual member states could fund Ukraine directly, with Germany, the Nordics, and the Baltics seen as potential participants.

Diplomats caution that forcing some countries to shoulder the financial burden alone could undermine EU solidarity. “Solidarity is a two-way street,” one official said.

Qualified majority voting could, in theory, override Belgium’s veto, but diplomats say this is not being seriously considered. The EU continues to balance the urgent financial needs of Ukraine with internal political unity.

By Tamilla Hasanova