The European Union unveiled two legislative proposals aimed at replenishing Ukraine’s war-drained budget, suggesting a loan backed either by frozen Russian assets or by the EU’s own budget — a move reported earlier by Bloomberg as part of the bloc’s increasingly urgent efforts to deliver financial support to Kyiv.
The proposals were announced only hours after Belgium pre-emptively rejected the Russian-assets option, which envisions using immobilized Russian central bank funds to underwrite about €90 billion ($105 billion) of Ukraine’s financing needs. Belgium, home to the Brussels-based financial services provider Euroclear where most of the Russian assets are held, fears it could ultimately be forced to repay the loan alone if disputes or legal challenges arise.
European Commission President Ursula von der Leyen said the plan contains safeguards designed to ensure Belgium and other member states would not bear disproportionate risk. “We have listened very carefully to Belgium’s concerns,” she said, stressing that the proposal includes “strong safeguards” to minimize exposure.
Belgium’s resistance presents a new obstacle for the EU as it tries to assemble a fresh financial package for Ukraine following the loss of US support. Kyiv is facing a severe budget shortfall in the coming months, heightening pressure on European capitals. According to Bloomberg, the White House has also urged the EU to move forward on using Russian assets and has floated the idea that Washington could tap the funds for post-war reconstruction efforts.
Von der Leyen said the EU’s proposals would help pave the way for peace efforts, noting that US Treasury Secretary Scott Bessent had “positively received” the plan. “We are increasing the cost of Russia’s war of aggression,” she said. “And this should act as a further incentive for Russia to engage at the negotiating table.”
Most EU leaders have long viewed the frozen-asset option as the most viable way to quickly secure large sums for Ukraine as Russia’s full-scale invasion approaches its fourth year. Belgium, however, remains wary of legal consequences given the concentration of Russian assets in its jurisdiction. “It is not acceptable to use the money and leave us alone facing the risk,” Belgian Foreign Minister Maxime Prevot said ahead of a NATO meeting in Brussels.
Von der Leyen emphasized that the burden would not fall on a single member state. “One thing is for sure, we will share the burden,” she said, adding that the plan provides a “strong guarantee” to cover potential damages to any country participating in the loan.
EU officials hope to finalize agreement on the Russian-assets plan at a summit in Brussels on Dec. 18, though the timeline remains uncertain. Prevot said Belgium still feels its concerns are being “downplayed,” signaling continued resistance.
Belgium’s pushback may force renewed scrutiny of alternative options. The commission’s second proposal — a loan backed by the EU’s own budget — is unpopular among several member states, but Belgium encouraged leaders to consider it. “It is a well-known, robust and well-established option with predictable parameters,” Prevot said.
German Foreign Minister Johann Wadephul, speaking after Prevot, said he believed the frozen-assets option could still succeed. While acknowledging Belgium’s concerns, he argued that the outstanding issues “can be solved.”
