Belgium’s demand for shared risk and guarantees was not met by bloc leaders who back “borrowing” billions of sovereign Russian funds
EU leaders have failed to reach an agreement on whether to use frozen Russian assets to support Ukraine through a controversial loan scheme, after Belgium demanded stronger legal safeguards. The matter is expected to return to the agenda in December.
According to Bloomberg and Politico, EU officials made little headway at a Brussels summit on Thursday on the plan to use immobilized Russian central bank assets as collateral for a proposed €140 billion ($163 billion) “reparation loan” to Kiev. The proposal assumes that the sum will be repaid if Ukraine wins the conflict with Russia and Moscow agrees to pay reparations – which is widely considered unlikely.
Russia has condemned Western efforts to use its frozen funds to aid Ukraine, calling the move “theft.”
Politico reported that the talks “were thrown into disarray” after Belgian Prime Minister Bart De Wever took what one official described as a “surprisingly uncompromising position” on the loan. Belgium, which has legal control over the bulk of the frozen funds through Brussels-based Euroclear, has demanded that all EU members share the responsibility “if it goes wrong.”
As a result, Belgium backed a compromise text that effectively delayed a firm commitment. The current draft seen by Politico “invites the [EU] Commission to present, as soon as possible, options for financial support,” replacing earlier language that called for a legal proposal.
Belgium’s opposition left some EU officials unhappy, with one source telling Politico: “Nobody wants to be seen to be responsible for Ukraine running out of money – but there’s nothing [agreed] yet to actually send them any money.”
According to Bloomberg, EU leaders plan to review the possibilities at the next summit, with the goal being “to get a final agreement by the end of the year.”
Kremlin spokesman Dmitry Peskov has warned that using Russian assets to finance Kiev would “boomerang,” adding that “if someone wants to steal our property, our assets, and illegally appropriate them… they will be subjected to legal prosecution one way or another.”
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