Overview
- The European Commission proposed a reparations loan using immobilised Russian state assets or, alternatively, EU market borrowing to raise €90 billion for 2026–27.
- Ursula von der Leyen said the package would cover two-thirds of Ukraine’s needs and that repayment would occur only if Russia pays reparations.
- Belgium, home to Euroclear holding roughly €183–194 billion of Russian reserves, rejected the loan design as too risky and demanded binding guarantees for shared liability.
- Approval paths diverge, with the reparations‑loan route eligible for qualified majority voting, whereas EU budget borrowing would require unanimity that Hungary has previously resisted.
- Moscow threatened retaliation as Maria Zakharova promised the “harshest reaction” and Dmitry Medvedev called the asset use a potential casus belli, while the EU seeks a decision on Dec 18–19 and looks to partners for early‑2026 support.