EU eyes 'Plan B' for Ukraine aid as Belgium blocks Russian asset seizure

WISE NEWS PRESS / BRUSSELS, BELGIUM — DEC. 1, 2025

European Union leaders are increasingly resigned to activating an emergency "Plan B" to keep Ukraine’s economy afloat, following a sharp rebuke from Belgium regarding the proposed use of frozen Russian assets.

With Belgian Prime Minister Bart De Wever raising the bar for approving a "reparation loan"—which would use profits from immobilized Russian funds to back aid—officials are now looking toward a bridge loan. This solution would see the EU raise funds on capital markets to provide Kyiv with non-repayable grants to cover its most urgent military and financial needs in 2026.

The 'bridge loan' alternative

The shift in strategy aims to buy leaders more time to resolve the standoff over the €185 billion in Russian Central Bank assets, the vast majority of which are held by Euroclear, a securities depository based in Brussels.

Originally, EU leaders hoped to sign off on the asset-backed loan at their upcoming summit on December 18. However, the complexity of the scheme and Belgium's refusal to bear the legal and financial risks alone have forced a rethink.

The urgency is driven by Kyiv’s dwindling resources; the country expects a fresh injection of aid by the second quarter of 2026 at the latest. Furthermore, an $8.1 billion IMF program is contingent on European assurances regarding Ukraine’s macroeconomic stability.

'Uncharted legal waters'

The deadlock deepened after Prime Minister De Wever sent a strongly worded letter to European Commission President Ursula von der Leyen, describing the reparation loan plan as "fundamentally wrong" and fraught with danger.

"If it can be avoided, why enter uncharted legal and financial waters, with all the possible consequences?" De Wever wrote. "I will never commit Belgium to alone bear the risk and exposure that would result from the reparation loan option."

De Wever is demanding "legally binding, unconditional, irrevocable" guarantees to cover all potential fallout, including arbitration costs, interest, and even lost investment opportunities. He also warned that Euroclear’s assets in "Russia-friendly jurisdictions" could be seized by the Kremlin in retaliation.

Geopolitical tensions and Russian threats

The dispute comes at a delicate moment for Western unity. German Chancellor Friedrich Merz urged a resolution by December to "strengthen our negotiating position." However, De Wever warned that rushing the asset seizure could sabotage ongoing peace efforts led by the White House.

"Rushing through the proposed reparation loan scheme would mean that we as the EU effectively block the reaching of a final peace deal," De Wever argued, suggesting that Russia, if not declared the "losing party," would legally retain the right to recover its sovereign assets.

Hours before De Wever’s letter was sent, Russian President Vladimir Putin warned that touching the funds would constitute "theft."

"The government of the Russian Federation... is developing a package of reciprocal measures in the event that this happens," Putin stated.

Compounding the difficulty for Kyiv is a domestic corruption scandal that recently led to the resignation of Andriy Yermak, President Volodymyr Zelenskyy's chief of staff. While EU diplomats insist aid should not be linked to the scandal, insiders admit it makes approving new funding politically more difficult across the bloc.

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