The European Union (EU) has failed, after intense negotiations in Brussels, to give the green light to the use of frozen Russian assets to finance Ukraine . The main obstacle was marked by Belgium, the country where the majority of Russian sovereign funds are deposited under the custody of the Euroclear clearing house.
The value of these assets amounts to around 200 billion euros (approximately 225 billion dollars), and the plan under discussion sought to use around 140 billion euros of this amount for a loan to kyiv, with the aim of covering its budgetary and military needs for the years 2026 and 2027. European leaders, with the exception of Hungary, decided on Thursday to postpone any conclusive decision and transferred to the European Commission the task of presenting new “financial support options” as soon as possible for the agenda of the next European Council, scheduled for December.
The proposal put forward by Brussels was for this support to take the form of a reparation loan : money from frozen Russian assets would be given to Ukraine at zero interest and would only have to be repaid if Russia ended the war and paid reparations for the damage caused.
European Commission President Ursula von der Leyen explained that this is not a definitive confiscation, as Russia would retain its rights to the assets and could reclaim them if it met the conditions imposed. Von der Leyen stated that this mechanism has a “solid legal basis” and emphasized that “Russia is the aggressor, it has caused the damage and must be held accountable.”
Despite the EU executive's efforts to draft legal guarantees and ensure"solidarity and risk-sharing," Belgium remained steadfast in its objections. Belgian Prime Minister Bart De Wever openly expressed his reservations and demanded a"full mutualization of risk," meaning that all EU Member States jointly assume the potential legal and financial repercussions arising from the mobilization of these funds.
De Wever warned of possible Kremlin retaliation:"If we want to give them to Ukraine, we have to do it all together. Otherwise, Russian retaliation could only affect Belgium. That's not very reasonable." He also stressed that never in European history—not even during World War II—had the mobilization of frozen assets from a third country been resorted to, thus underscoring the magnitude of the step this measure entails.
Belgium's unease is not unique. Other member states have expressed similar concerns, not only on the legal front but also in the face of a possible Russian backlash against European interests, particularly in the international financial system. Luxembourg Prime Minister Luc Frieden stressed the importance of safeguarding the legality of the procedure and welcomed the fact that, thanks to the progress in the negotiations, the option of direct confiscation of assets has been ruled out, a position echoed by the European Central Bank.
According to diplomats cited by AFP, the meeting's final agreement was deliberately general to accommodate Belgium's reserves, removing any direct reference to the immediate use of the liquidity generated by the assets. However, the same sources specified that the agreement gives impetus to plans to use these funds and makes clear the bloc's political commitment to Ukraine's financial needs. European Council President António Costa stressed on social media that the EU"is committed to addressing Ukraine's pressing financial needs for the next two years, including supporting its military and defense efforts. Russia must stop the war immediately."
The European Commission estimated that the so-called reparation loan could generate around €45 billion annually between 2026 and 2028. Brussels warns that, given the delay in the EU's multiannual budget negotiations, there are few alternatives to guarantee the necessary assistance to Kyiv during this period.
EU sources confirmed that the text approved at the summit—without Hungary's support—waters down the reference to the immediate use of profits from Russian assets and postpones a possible final solution to December. Meanwhile, the interest generated by the frozen assets is already being partially used for G7 loan programs for Ukraine, a practice that will continue outside the new project.
The international context also remains expectant. G7 countries such as Japan, the United States, the United Kingdom and Canada retain smaller amounts of frozen Russian assets, but the EU hopes they will join in similar measures if a consensus is reached in Brussels.
Despite the summit's inconclusive outcome, Ukraine reiterated the urgency of the measure. European Council President António Costa praised the agreement as an"important message" to kyiv, which is seeking to keep its economy afloat and strengthen its military capability in the face of Russia's spring offensive. In the meeting's conclusions, the leaders emphasized the need to accelerate military support, with special attention to air defense systems, anti-drone systems, and large-caliber munitions, as well as the development of the Ukrainian defense industry within the EU.
