Overview
- Leaders meeting in Brussels are set to debate instructing the European Commission to draft a plan, with Valdis Dombrovskis signaling a concrete proposal within weeks.
- The concept would convert roughly €140 billion in Russian central‑bank reserves—mostly held at Euroclear in Belgium—into an interest‑free facility to fund Ukrainian defense purchases for the next two to three years.
- Repayment would hinge on postwar reparations, creating contingent liabilities for member states if courts order restitution or Ukraine cannot repay, with Germany’s potential exposure estimated at about €30 billion.
- Belgian Prime Minister Bart De Wever has raised legal and fiscal risks tied to state immunity and possible lawsuits, and EU officials say Belgium may allow work to proceed at the summit while reserving the option to block a final legal act.
- Germany is pressing for coordinated G7 participation as the U.S. remains hesitant, and the debate comes as Russia intensifies strikes on Ukraine with reported casualties and power outages.