Belgian Prime Minister Bart De Wever has reportedly warned the European Commission that its plans to use frozen Russian sovereign assets to fund a proposed €140 billion ($162.4 billion) reparations loan for Ukraine are “fundamentally flawed.”
De Wever reportedly conveyed his points in a four-page letter sent to European Commission President Ursula von der Leyen. Radio Free Europe/Radio Liberty shared the letter on Friday.
De Wever said the proposal, focused on Russian central bank assets frozen in Euroclear, the Brussels-based securities depository, exposes Belgium and the EU to significant legal and financial risks.
He added that he was “surprised” by what he described as a lack of understanding of these concerns from the plan’s supporters, noting that Moscow is highly likely to pursue countermeasures in international courts, as most of its frozen assets are held in Euroclear.
He said Russia would attempt to target Euroclear “wherever it can, including in jurisdictions friendly to Russia,” noting that the company’s global structure makes it vulnerable.
De Wever rejected assurances by EU officials that the legal framework could be designed to avoid violating international law. Citing assessments by “specialized law firms,” he said Belgium and Euroclear could face international claims, while the perception of expropriation risks could undermine investor confidence in the euro.
Russian retaliation, expropriation, investor risk
De Wever argued that markets might demand higher risk premiums to offset the risk of asset seizure, thereby increasing systemic risk for Euroclear and EU financial markets and potentially destabilizing the euro itself.
The letter also highlights the temporary nature of the EU sanctions regime that froze Russian sovereign assets, which must be renewed every six months. De Wever said making the structure permanent would heighten investor concerns that EU sanctions are “expropriatory in nature.”
He said the assets are part of ongoing discussions on a potential peace settlement between Ukraine and Russia, warning that the EU must not “unwittingly prevent the conclusion of a final peace agreement.”
Any future settlement, he said, is expected to include the role of Russian sovereign assets.
To illustrate the scale of the risk, De Wever compared the proposal to aviation: While crashes are rare, their consequences are catastrophic.
Belgium’s preconditions
De Wever outlined conditions under which Belgium could support the plan, including EU-wide burden-sharing for potential legal liabilities, mandatory participation from all member states holding Russian sovereign assets, and involvement from non-eurozone countries and G7 states to reduce the concentration of risk on the euro – a position also raised by European Central Bank President Christine Lagarde.
De Wever urged the Commission to examine “alternative avenues,” including using the EU’s budgetary reserves to cover Ukraine’s projected €46 billion ($53.36 billion) financing needs in 2026.
Belgium has not ruled out the reparations-loan mechanism entirely.
De Wever said support would depend on member states providing “full and signed guarantees” to secure the liquidity of Russian sovereign assets held in Euroclear when the European Council decides on Dec. 18-19.
The European Commission maintains that a reparations-based loan remains its preferred option for financing Ukraine in 2026-27, despite revised summit conclusions in October. Technical proposals are expected to be finalized ahead of the December European Council meeting.