Several EU member states are escalating pressure on Belgium over its refusal to back a plan to send €140 billion ($162 billion) in frozen Russian state assets to Ukraine. Frustration has grown as several diplomats describe a lack of transparency regarding the tax revenue generated from those immobilized funds and fears that the standoff could derail both financial assistance to Kyiv and broader EU unity.
According to Politico, five EU diplomats from different member states accused the Belgian government of failing to fully disclose how it uses tax income derived from Russian assets held by Euroclear in Brussels, arguing that the money appears to remain folded into Belgium’s national budget instead of being clearly transferred to Ukraine as previously pledged.
EU warns that Belgium’s resistance threatens collective security
Diplomats are concerned that Belgium may not be fully living up to its commitments to Kyiv. They warned that Belgium’s stance risks undermining Europe’s collective security efforts. “In light of this ongoing foot-dragging behavior, one wonders whether it has actually been understood that it’s Europe’s security which is at stake here,” a senior EU diplomat said.
The European Commission is pushing for agreement among all 27 member states to convert frozen Russian reserves into a reparations loan for Ukraine at the upcoming European Council summit on Dec. 18. Belgium’s approval is crucial because the bulk of the assets are held at Brussels-based Euroclear.
However, Belgian Prime Minister Bart De Wever has hardened his opposition, arguing that Belgium could face massive legal and financial consequences if Russia seeks retaliation or attempts to reclaim the funds, noting that Moscow has already raised such threats.
In a letter to European Commission President Ursula von der Leyen, seen by Reuters, De Wever warned that rushing ahead could harm diplomatic efforts to end the war.
De Wever wrote described the plan as flawed, stating: “The proposed reparations loan scheme is in my view fundamentally wrong,” adding that historically, frozen assets have been dealt with only after wars ended, not during active conflict.
Transparency dispute over tax revenues
The core of the dispute centers on tax collected from interest generated by frozen Russian assets. Belgium levies a 25% corporate tax on profits earned by Euroclear from holding the reserves. In 2024 alone, that tax income reportedly amounted to €1.7 billion ($1.85 billion), while Belgium’s total declared contribution to Ukraine between the start of the war and August 2025 stood at €3.44 billion ($3.75 billion), according to estimates cited by Politico.
Belgian officials deny any wrongdoing and insist all such revenue is earmarked for Ukraine.“The Belgian government has committed to allocating all corporate tax revenue from the interest income on Russia’s immobilized assets at Euroclear to support Ukraine,” a Belgian official said. “For 2025, this revenue is currently estimated at around €1 billion ($1.1 billion).”
The government also said it has provided nearly €1 billion ($1.1 billion) in military and other support to Ukraine since 2022 from federal budget sources beyond the asset-related taxes.
But several diplomats argue that Belgium failed to honor a 2024 pledge to route these funds through a dedicated EU and G7 financial instrument to ensure transparency. When asked why that mechanism was not being used, Belgian authorities did not respond. One senior EU diplomat said bluntly: “The tax revenue was already part of their domestic budget, and they didn’t want to give it up.”
Belgium defends position as transparency questions persist
Belgian officials, for their part, have continued to defend their position. De Wever once again stressed that Brussels has yet to see full legal wording from the European Commission, saying Belgium had not received “any proposed legal language by the Commission” so far.
The European Commission is expected to present draft proposals addressing Belgian concerns in the coming days, as leaders attempt to reach consensus before the Dec. 18–19 summit.
Despite resistance from Brussels, EU officials say they will continue challenging Belgium in upcoming meetings, questioning whether it is profiting from the assets rather than fully meeting its commitments to Ukraine.
France, Luxembourg and other states have also frozen Russian assets, but Belgium’s role remains pivotal due to Euroclear’s central position in holding the majority of the funds.
With Ukraine facing a widening financing gap next year, the reparations-loan proposal remains one of the few major options on the table – yet internal EU divisions now threaten to delay or derail what many members see as a critical lifeline for Kyiv.