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Belgium Escalates Block on EU Plan to Leverage Frozen Russian Assets for Ukraine

The European Commission will present a legal justification within days to win backing before the December 18–19 leaders’ summit.

Overview

  • Prime Minister Bart De Wever told Ursula von der Leyen the reparations-loan scheme is "fundamentally wrong," could hinder a future peace deal, and will only get Belgian support if other states give binding, immediate risk-sharing guarantees.
  • Euroclear warned EU leaders the loan design would be seen as confiscation outside the bloc, could raise sovereign borrowing costs, and might trigger compensatory claims on member states.
  • The Commission confirmed receipt of De Wever’s letter and said it is working with capitals, including Belgium, to finalize a legal text to operationalize the proposal for roughly €140 billion.
  • Several EU diplomats pressed Belgium over transparency on corporate tax receipts from interest on the immobilised assets, while Brussels insisted those revenues are earmarked for Ukraine.
  • With most Russian sovereign reserves held at Euroclear in Belgium, EU governments are exploring fallback financing such as joint borrowing and faster G7 disbursements as Germany and others push for a deal at the December summit.