The European Union plans to coordinate the transfer of €140 billion ($163 billion) in frozen Russian assets to Ukraine by December, with the first payments expected in the second quarter of 2026.
However, Belgium’s objections to the proposed “reparations loan” could delay the process, according to the Financial Times (FT) report.
About €190 billion ($221 billion) in Russian sovereign assets held at Euroclear - the Brussels-based central securities depository – were frozen following Russia’s full-scale invasion of Ukraine in 2022.
While many Western capitals initially resisted accessing these funds over legal and financial concerns, positions have recently shifted.
The change came after the Trump administration urged G7 allies to seize or use Russia’s frozen assets “to fund Ukraine’s defense,” according to a US position paper seen by the FT.
German Chancellor Friedrich Merz wrote in an FT op-ed that €140 billion of these funds should be used as a loan to arm Ukraine.
The European Commission has since outlined how such a “reparations loan” could be structured, arguing that Moscow should bear the costs of President Vladimir Putin’s war.
But Belgian Prime Minister Bart De Wever has demanded that the other 26 EU countries share the legal and financial risks and guarantee the full loan amount to avoid Belgium being liable for repayment.
His position has drawn criticism from other EU capitals, especially since Euroclear’s profits have been taxed in Belgium.
“[Belgium] has spent three years saying Euroclear is Belgian and so are the benefits,” one senior EU diplomat told the FT. “Now, when it wants to share the risks, it claims Euroclear is European.”
According to several diplomats, frustration with Belgium’s stance is growing ahead of another round of EU talks on Wednesday.
Other leaders argue that solidarity is essential, noting that Poland agreed to host the main hub for weapons deliveries to Ukraine, and Denmark pledged F-16 fighter aircraft – without demanding that others share the risks.
The European Commission has tried to address Belgium’s concerns by adding a provision for national contingent liabilities in case Russia eventually pays war reparations separately.
“We think actually that the risks here for Belgium are rather limited,” a senior EU official said. “That is not to say that there is no risk at all, and it is not to say that we do not want to engage in a very serious discussion with Belgium... But these risks are probably manageable.”
The Commission, supported by most EU governments, maintains that the loan is not asset confiscation and that non-EU court rulings would not apply.
However, the Belgian government insists that “the current plan that is circulating is not satisfactory,” adding that the proposed liabilities do not “address the issue of risk coverage.”
Since 2022, Belgium has collected €3.6 billion ($4.19 billion) in taxes on Euroclear profits from Russia’s frozen assets. The government says these revenues are “earmarked entirely for the support of Ukraine.”
Not all the funds have reached Kyiv, though.
“Some people say behind my back that I’m a war profiteer... because I want to keep one billion in tax money,” De Wever said last week. “That’s what we call in my language, small money, one billion, for the risk we are taking.”
De Wever’s position has frustrated some EU leaders, who note that Belgium’s military support to Ukraine has been far smaller than that of Denmark, Sweden, or Germany. Belgian officials argue he is defending national interests, but other EU leaders warn that his rigidity could undermine broader efforts.
Ukraine has received the seventh tranche of €4 billion ($4.7 billion) from the European Union under the G7-backed Extraordinary Revenue Acceleration (ERA) initiative on Oct. 1.
The ERA program redirects interest income from frozen Russian assets to support Ukraine’s state budget. With this payment, the EU’s total contribution under ERA has reached €18.1 billion ($21.1 billion), while G7 countries have pledged up to $50 billion (€43.0 billion) in aid through 2025.
According to Ukraine’s Ministry of Finance, the remaining funds under the ERA program are expected to arrive by the end of 2025.
“The ERA funds have become an important tool to meet budgetary needs in 2025,” the ministry said, quoting Finance Minister Serhiy Marchenko. “The issue of further use of frozen Russian assets for Ukraine’s needs remains on the agenda in meetings with European colleagues.”
At the same time, the EU is considering a broader initiative to provide Ukraine with “reparation loans” backed by frozen Russian central bank assets.
Under the proposed mechanism, Russia would formally retain ownership of the assets – converted into bonds – while Ukraine would receive loans that could be written off if Moscow fails to pay war reparations. The potential loan package is estimated at €130 billion ($151 billion).
Supporters of the plan argue that using Russia’s frozen funds is both fair and necessary to sustain Ukraine’s finances, insisting that Moscow, not European taxpayers, should bear the cost of rebuilding after its war of aggression.