Overview
- The European Commission is pushing a reparations loan for 2026–27 that would mobilize up to €165–€210 billion based on the cash value of immobilized Russian central bank assets.
- Draft allocation figures circulated to capitals show national backstops proportionate to GNI, with Germany expected to guarantee about €51–€52 billion, France €34 billion and Italy €25 billion.
- Belgium remains the main holdout over legal and retaliation risks tied to assets concentrated at Euroclear, which holds roughly €185–€193 billion and has warned of liquidity, legal and market-confidence threats and possible court challenges.
- G7 finance ministers said they would consider options using immobilized Russian sovereign assets consistent with national legal frameworks, but Japan rejected joining the EU-style scheme and the United States has not signed on, while the U.K. and Canada signaled conditional openness.
- European Council President Antonio Costa said the bloc is close to a solution that could pass by qualified majority and pledged to keep next week’s summit going until a conclusion, as fallback joint borrowing faces unanimity hurdles.