The European Union is exploring ways to use Russian assets frozen in Belgium to fund Ukraine’s ongoing conflict with Russia. The EU has already frozen around €200 billion ($225 billion) of Russian central bank assets, with the majority held in the international deposit organization Euroclear, based in Belgium. To avoid directly seizing these assets, which is a red line for many EU member states, the European Commission has proposed a complex scheme. This scheme involves borrowing funds from Euroclear that have matured into cash, which would then be loaned to Ukraine. The understanding is that Kyiv would only repay the loan if Russia pays reparations for the damage it has caused.
The EU’s plan is part of a broader effort to support Ukraine, which has received around €180 billion ($208 billion) in aid so far. However, reconstruction costs are estimated at approximately €480 billion ($556 billion), and Ukraine’s economy is struggling. The EU’s proposal has faced opposition from Belgium, which fears costly legal challenges from Russia if the assets are used without firm guarantees from other EU states. Belgian Prime Minister Bart De Wever insists that all EU member states share the liability if Moscow comes calling. Despite these challenges, EU leaders are expected to give a preliminary green light to the plan, allowing the European Commission to draw up a formal legal proposal for the loan.
