EU Advances Russian Asset Profits Loan for Ukraine Despite Belgian Opposition

The European Commission is moving forward with plans to use profits from approximately 140 billion euros in frozen Russian central bank assets to fund a loan for Ukraine, despite strong opposition from Belgium, as peace negotiations intensify amid a U.S.-led deadline.

The initiative, centered on assets immobilized at Euroclear, a securities depository in Brussels, aims to address Ukraine's projected budget shortfall of about 136 billion euros for military and financial support in 2026 and 2027. Commission officials, including chief spokesperson Paula Pinho, emphasized on Friday that the executive body remains committed to the scheme, known as a reparations loan, while working to resolve concerns raised by member states. "What we are trying to do is to really make sure that the concerns that have been expressed, notably by Belgium and the prime minister, are addressed in a satisfactory manner so that everybody is comfortable," Pinho said.

Belgian Prime Minister Bart De Wever outlined his government's reservations in a letter to Commission President Ursula von der Leyen on November 27, describing the plan as fundamentally flawed. He argued that using the assets as collateral could...