Overview

• German Chancellor Friedrich Merz said he expects the European Council to decide in three weeks on a plan to leverage roughly €140 billion in frozen Russian central‑bank assets for Ukraine-focused loans or reparations instruments.
• Belgian Prime Minister Bart De Wever called the proposal very risky and pivotal to approve, citing unresolved legal issues, threats to Euroclear and the possibility that countries such as China could pull reserves from Europe.
• The European Commission concept would provide interest‑free financing to Kyiv that is only repaid if Russia pays reparations, with potential state guarantees if assets must be returned, whereas only the accrued interest has been used so far.
• The Kremlin denounced any seizure as theft and warned of retaliation, and reporting says Vladimir Putin signed a decree enabling faster action against foreign‑linked assets inside Russia.
• Even with political backing this month, officials caution the mechanism would take months to design and execute, as other leaders including Viktor Orban and Giorgia Meloni also flagged concerns and most EU‑held Russian assets sit at Euroclear in Belgium.