Belgium is under significant pressure over the issue of using frozen Russian assets to provide a 'reparations loan' to Ukraine, after Berlin and other Western capitals changed their stance and became more active in decision-making, writes the Financial Times.
About €190 billion of Russian state assets held in Euroclear, the central securities depository in Brussels, were frozen following Russia's full-scale invasion of Ukraine in 2022.
The European Commission explained how such a 'reparations loan' could be structured, emphasizing that Moscow should bear the costs of Putin's illegal war. The loan is structured in such a way that it is not asset confiscation, and court decisions outside the bloc are not recognized by the EU, the commission claims.
However, Belgian Prime Minister Bart De Wever demanded that the other 26 EU countries assume the legal and financial risks associated with the loan and guarantee its full amount so that Belgium would not be forced to reimburse the money.
This position has drawn criticism in other capitals, especially given that Euroclear's revenues are taxed in Belgium. 'For three years, Belgium said Euroclear is Belgian and so are the profits, and now, when it wants to share the risks, it claims Euroclear is European,' an EU diplomat told the publication. Since 2022, the Belgian government has received €3.6 billion in taxes on income from Russian assets and stated that these funds are entirely intended to support Ukraine. However, not all the money has been transferred to Kyiv yet. De Wever noted that part of it—€1 billion—is kept by Belgium as a reserve for risks.
Despite the disagreements, the EU plans to agree on a €140 billion loan by December, with the first payments in the second quarter of 2026.
Meanwhile, the governments of Hungary and Slovakia plan to delay the adoption of the 19th package of EU anti-Russian sanctions for concessions in their economic interests, reports EUObserver.
Hungary intends to secure exceptions to the European Commission's proposed full ban on importing Russian liquefied natural gas (LNG).
Slovakia hopes for a workaround in EU legislation banning internal combustion engines by 2035, as the country produces many cars.