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EU Presses Belgium to Back €140 Billion Ukraine Loan Using Frozen Russian Assets

Belgium’s demand for sweeping guarantees is stalling the EU plan the IMF deems essential for keeping Ukraine financed.

Overview

  • Senior Commission officials are holding high-level talks with Brussels on Friday to win consent for a reparations loan backed by Russian state assets held at Euroclear.
  • Prime Minister Bart De Wever remains the key holdout as his government focuses on closing a domestic budget, complicating the timeline for an EU deal.
  • Belgium is seeking more than €170 billion in rapidly callable national guarantees and firm legal protections against potential lawsuits or repayment claims from Russia.
  • The Commission says litigation risks are contained and is exploring a mechanism to keep Russian assets frozen until reparations are paid, with national guarantees envisaged until an EU backstop from 2028.
  • Legislation is expected once Belgium signs off, but likely European Parliament involvement could slow approval beyond April, jeopardizing IMF-linked support as Ukraine faces a $60–65 billion funding gap.