"It's a mess": Belgium's stance on 'reparations loan' takes EU by surprise — Politico

The European Union’s plans for a €140 billion "reparations loan" to Ukraine, backed by frozen Russian assets, were derailed by Belgian Prime Minister Bart De Wever — a move that caught EU officials off guard, Politico reports.

According to the newspaper, De Wever’s opposition to the plan stemmed from concerns about possible Russian retaliation against Belgium, which hosts the majority of the frozen assets. As a result, EU leaders will now have to revisit the issue of aid to Ukraine in December – unless they convene an emergency summit earlier.

"This is a mess. It shouldn’t have happened this way," a European diplomat said on condition of anonymity.

Belgium’s position surprised diplomats, EU ministers, and senior officials working for European Commission President Ursula von der Leyen. Her team had recently assured colleagues that a compromise acceptable to De Wever had been found.

French President Emmanuel Macron insisted that the proposal to use Russian assets as collateral for a loan to Kyiv was still on the table.

"It was not buried; we were able to discuss technical details. We need to move forward methodically, because we cannot do anything that violates international law," Macron said.

Another EU diplomat remarked that following the bloc’s adoption of its 19th sanctions package against Russia — and the introduction of new U.S. sanctions — a "reparations loan" would have made it "a really good day," but instead, "it’s an opportunity we missed."

On October 23, the European Union postponed until December its decision on using the frozen assets of the Russian Central Bank to support Ukraine. The delay came after Belgium — where most of the Russian funds are held — demanded stronger guarantees that it would not bear legal or financial risks.

• The idea of a "reparations loan" of up to €140 billion, backed by Russia’s frozen asset balances, was first proposed on September 10.
• According to Polish Deputy Foreign Minister Ignacy Niemczycki, the scheme could provide Ukraine with €45 billion annually over three years — from 2026 to 2028.
• President Volodymyr Zelenskyy emphasized that it is important for Ukraine that part of the proceeds from frozen Russian assets be directed toward financing the production of long-range weapons.