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EU Leaders Delay Decision on Using Frozen Russian Assets After Belgian Objections

Belgium demands shared guarantees before backing the scheme.

Overview

  • The summit statement was watered down to merely invite the European Commission to present financing options, pushing a substantive decision to December.
  • Prime Minister Bart De Wever objected because most frozen Russian central-bank reserves, about €190 billion, sit at Belgium-based Euroclear, concentrating legal and financial risk in his country.
  • Belgium wants default and retaliation risks shared across all EU states, commitments to cover repayments if needed, and inclusion of assets held outside Belgium.
  • The Commission’s concept envisions a €140 billion reparations-style loan for Ukraine backed by the frozen assets, a legally novel structure that could expose custodians and state budgets if Russia never pays reparations.
  • Separately, the EU approved its 19th sanctions package on Russia, including a full ban on Russian LNG imports starting in 2027.