Belgium opposes EU plan for 165 billion for Ukraine due to fear of Russian retaliation

The European Commission has offered Ukraine a €165 billion loan, derived from profits and frozen Russian assets in Belgium, POLITICO reported, citing internal documents.

The loan is part of a larger financial package worth up to €210 billion to support Ukraine’s economy in the coming years.

The proposal includes €25 billion in Russian state assets frozen in accounts in the European Union, as well as €140 billion held at Euroclear in Belgium. Experts estimate that Ukraine’s financial reserves could run out as early as April.

The draft will serve as the basis for technical talks ahead of a meeting of EU leaders in mid-December to discuss the initiative’s key aspects. Under the terms, Ukraine is to return the funds only if Russia ends the war and pays reparations, which seems unlikely.

The document shows that €115 billion is earmarked to support Ukraine’s defense sector, and €50 billion to cover Kyiv’s budget. An additional €45 billion of the total package will be used to repay the G7 loan granted to Ukraine in 2024.

One of the main obstacles is Belgium’s position, which expresses concerns about the proposed lending structure and the possible consequences for the country and Euroclear from Russia.

Belgian Foreign Minister Maxime Prevost noted that the text presented by the Commission does not address their reservations to the extent they consider necessary, which is frustrating given the sense of being ignored.

Brussels is also seeking guarantees from other states in the event that Russia returns its assets. Meanwhile, the European Commission is ready to offer Ukraine temporary financing at the beginning of the year, likely through EU debt instruments.