Pressure Mounts on Belgium to Release Frozen Russian Assets for Ukraine Loan

WISE NEWS PRESS / BRUSSELS, BELGIUM — NOVEMBER 15, 2025

Pressure is escalating on Belgium to back a groundbreaking plan to finance Ukraine’s war efforts using frozen Russian Central Bank assets, as the idea of providing the funding as a loan gains widespread support across the European Union. Belgium, which hosts Euroclear—the financial institution where most of the immobilized assets are held—is hesitant to give its approval.

The proposal involves issuing a €140 billion loan secured against the assets, which would cover Ukraine’s military and general budget expenditures for the next two years. EU finance ministers have referred to the proposal as the "best option," signaling mounting support across the bloc.

The Loan: "The Best and Most Realistic Option"

Stephanie Lose, Danish Finance Minister, who chaired the recent meeting, stated that the plan is the top priority:

"My takeaway is that the Commission's proposal is the best and most realistic option and should be treated as a highest priority issue. We will continue to work closely with all member states to find the best way forward."

Valdis Dombrovskis, European Commissioner for Economy, also argued that the plan would "secure Ukraine's financing without imposing an additional burden on member states with limited fiscal capacity." Dombrovskis stressed that aid must remain largely in the form of grants to avoid increasing Ukraine's debt burden.

Dombrovskis acknowledged that while "other options are available," they would mean higher costs for member states—a reality he insisted the EU must be clear about. Ukraine will need a new foreign aid package by the second quarter of 2026.

Belgium Fears Kremlin Retaliation

Despite the broad support, Belgium remains unyielding. Its primary concern centers on risk management and the potential for the Kremlin to retaliate, especially since the country hosts Euroclear.

Belgium is bound by an old, Soviet-era investment treaty with Russia that mandates the resolution of disputes via arbitration rather than in court. The core issue for Belgium is the management of risk: in the event of default or a lawsuit, how will the EU collectively manage the risk, and will Belgium, as Euroclear’s host, be forced to bear the burden alone?

Belgian Prime Minister Bart de Wever is demanding "maximum legal certainty" and "equal sharing of responsibility." An EU official criticized the Commission's focus on the Russian assets plan instead of exploring other solutions, stating, "The risk is very high... We want a legal text where the risk is completely shared."

While the European Commission is seriously working to address Belgium’s concerns, the continued uncertainty casts doubt on whether EU leaders will be able to approve the plan at their December summit.

Paschal Donohoe, Irish Finance Minister and Eurogroup President, commented that while the indemnity loan has strong points, it also brings certain difficulties, and progress should be made only after Belgium's reasonable requests are addressed and all alternatives are thoroughly evaluated.

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