Belgium seeks protection from Russia over Ukraine loan
Belgium insisted on Thursday that its European Union partners must provide ironclad guarantees that it will be protected from Russian retaliation before it would back a massive loan for Ukraine. At a high-stakes EU summit in Brussels, the 27-nation bloc’s leaders are set to decide on whether to use tens of billions of euros in frozen Russian assets to underwrite a loan to meet Ukraine’s military and financial needs over the next two years.
The bulk of the assets — some 193 billion Euros ($227 billion) as of September — are held in the Brussels-based financial clearing house Euroclear. Russia’s Central Bank sued Euroclear last week. “Give me a parachute and we’ll all jump together,” Prime Minister Bart De Wever told members of the Belgian parliament just before the summit began. “If we have confidence in the parachute that shouldn’t be a problem.”
Belgium fears that Russia will strike back and would prefer that the bloc borrow the money on international markets. It wants frozen assets held in other European countries to be thrown into the pot as well, and for its partners to guarantee that Euroclear will have the funds it needs should it come under legal attack. European officials say Russia is waging a campaign of sabotage and disruption across the continent. The Central Bank lawsuit ramped up pressure on Belgium and its European partners ahead of the summit.
The “reparations loan” plan would see the EU give 90 billion Euros to Ukraine. Countries like the UK, Canada and Norway would make up any shortfall. Russia’s claim to the assets would still stand, but the assets would remain locked away at least until the Kremlin ends its war on Ukraine and pays for the massive damage it’s caused. In mapping out the loan plan, the European Commission set up safeguards to protect Belgium, but De Wever remains unconvinced.
“I have not yet seen a text that could satisfactorily address Belgium’s concerns,” he said. “I hope to see one today.” De Wever insisted that Belgium remains “a faithful ally” of Ukraine and wants to continue to help. Whatever method they use, the leaders have pledged to meet most of Ukraine’s needs in 2026 and 2027. The International Monetary Fund estimates that would amount to 137 billion Euros ($160 billion).
The war-ravaged country is at risk of bankruptcy and needs the money by spring. “We have to find a solution today,” European Commission President Ursula von der Leyen told reporters. EU Council President António Costa, who is chairing the meeting, has vowed to keep leaders negotiating until an agreement is reached, even if it takes days. Polish Prime Minister Donald Tusk said: “Now we have a simple choice. Either money today or blood tomorrow.” He insisted that “all European leaders have to rise to the occasion.”
EU envoys have worked around the clock in recent weeks to flesh out the details and narrow differences among the 27 member countries. If enough countries object, the plan could be blocked. There is no majority support for a plan B of raising the funds on international markets. “At this stage, it depends on political will,” Ukrainian President Volodymyr Zelenskyy said in a Whatsapp chat with reporters while flying to Brussels. “I very much hope that we can obtain a positive decision. Without it, Ukraine will face a major problem.”
German Chancellor Friedrich Merz said that he hopes Belgium’s concerns can be addressed. “The reactions of the Russian president in recent hours show how necessary this is. In my view, this is indeed the only option. We are basically faced with the choice of using European debt or Russian assets for Ukraine, and my opinion is clear: we must use the Russian assets.”
Hungary and Slovakia oppose von der Leyen’s plan for a reparations loan. Apart from Belgium, Bulgaria, Italy and Malta are also undecided. “I would not like a European Union in war,” said Hungarian Prime Minister Viktor Orbán, who sees himself as a peacemaker. He’s also Russian President Vladimir Putin’s closest ally in Europe. “To give money means war.”
Orbán described the loan plan as “a dead end,” and said that “the whole idea is a stupid one.” High stakes for the EU The outcome of the summit has significant ramifications for Europe’s place in negotiations to end the war. The United States wants assurances that the Europeans are intent on supporting Ukraine financially and backing it militarily, even as the talks drag on with few results so far.
The loan plan in particular also poses important challenges to the way the bloc goes about its business. Should a two-thirds majority of EU leaders decide to impose the scheme on Belgium, which has most to lose, the impact on decision-making in Europe would be profound. Finding voting majorities and avoiding vetoes in the future could become infinitely more complex if one of the EU’s founding members is forced to weather an attack on its interests by its very own partners.
De Wever too must weigh whether the cost of holding out against a majority is worth the hit his Government’s credibility would take in Europe. Whatever is decided, the process does not end at this summit. Legal experts would have to convert any political deal into a workable agreement, and some national parliaments may have to weigh in before the loan money could start flowing to Ukraine.
