Overview

• The European Commission is pressing Belgium and Euroclear to allow a loan mechanism using cash linked to frozen Russian sovereign assets to finance Ukraine.
• Prime Minister Bart De Wever’s conditions include bloc‑wide guarantees that do not expire when sanctions are lifted and a commitment to front cash if Euroclear must return assets, for instance after a peace deal.
• The Commission’s design would mobilize about €175 billion in matured cash balances held at the ECB to fund a €140 billion loan and repay an earlier G7 loan, which Brussels argues is non‑confiscatory.
• EU leaders aim for a political agreement at an October 23 summit to clear the way for a legal proposal, with a broader deal targeted by December and first disbursements in the second quarter of 2026.
• The ECB and some EU governments warn the approach resembles confiscation and could carry legal and market risks, while Moscow has threatened lawsuits and retaliatory measures.