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EU Calls Crisis Talks With Belgium Over Frozen-Assets Ukraine Loan

The Commission is racing to salvage a reparations-style financing plan after Belgium’s objections raised the risk that Ukraine will need temporary EU cash next year.

Overview

  • Senior Commission officials and Belgium will meet Friday to try to break the deadlock on a proposed €140 billion loan backed by cash from immobilised Russian central bank assets at Euroclear.
  • Economy Commissioner Valdis Dombrovskis warned that delays could force a bridging solution to keep Ukraine financed in early 2026 if the loan is not agreed in time.
  • Belgium is seeking ironclad guarantees, rapid payout mechanisms, shared legal costs, broader participation by other asset‑holding countries, and protection from a sanctions reauthorization veto.
  • Deputy finance ministers made no progress on Tuesday, and the Commission will present Belgium with a memo outlining alternative EU borrowing options to support Kyiv.
  • EU leaders did not give a clear mandate in October, Sweden and Finland peg Ukraine’s 2026–27 funding gap at about €130 billion, and officials caution Kyiv could face a shortfall by early Q2 2026.