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EUBelgium Talks Stall on Plan to Use Frozen Russian Assets for Ukraine Loan

Failure to resolve Belgium’s demands risks missing an April window tied to IMF-backed funding for Kyiv.

Overview

  • A technical meeting on Friday produced no breakthrough, with Belgian officials saying they have not seen sufficient alternative approaches from the European Commission.
  • The Commission’s plan would channel up to €185 billion in immobilized Russian sovereign assets to fund a roughly €140 billion multi‑year reparations loan without formal confiscation.
  • Belgium, home to Euroclear where most assets are held, seeks robust national guarantees exceeding €170 billion and legal assurances, including a mechanism to keep assets immobilized beyond six‑month sanctions renewals.
  • EU officials expect the European Parliament to help craft the legal instrument, a step that could slow approval as Kyiv faces a potential funding shortfall by April and IMF support hinges on a credible EU commitment.
  • The United States publicly backs the EU using the frozen assets, while Russia warns any expropriation would be treated as theft and met with immediate retaliation.