EU Awaits Belgium’s Consent to Present Ukraine Loan Plan Using Frozen Russian Assets
Belgium’s concerns about liability for assets held via Euroclear have left the Commission waiting to proceed.
Overview
- Commission officials say a formal proposal could be filed within weeks if Belgium lifts its objections, with high-level talks scheduled today.
- Involving the European Parliament is likely, a step sources warn could slow approval and jeopardize the target of mobilizing about €140 billion by April 2026.
- Financial Times reports the EU may face up to €5.6 billion a year in interest costs if the assets underpinning the package cannot be used, with Italy estimated at €675 million and Belgium at nearly €200 million annually.
- Belgium blocked the plan at an October summit over fears it could shoulder compensation claims because the bulk of the frozen reserves sit at Brussels-based Euroclear.
- Russian officials have condemned any confiscation as theft and threatened immediate, painful countermeasures, while EU officials note IMF support for Kyiv is tied to progress on the loan mechanism.