Belgium has rejected a European Union legal proposal that would allow the bloc to tap frozen Russian assets to finance loans for Ukraine, dealing a setback to Brussels’ efforts to secure long-term funding for Kyiv.
The refusal came just hours before the European Commission, the EU’s executive arm, was expected to unveil a legislative package enabling the union to leverage €210 billion ($244 billion) in immobilized Russian central bank assets to back loans supporting Ukraine’s defense against Russia’s ongoing invasion.
Speaking Wednesday morning ahead of a NATO meeting in Brussels, Belgian Foreign Minister Hadja Lahbib (Maxime Prévot in some versions of the report, depending on the outlet cited) said the forthcoming Commission text does not adequately address Belgium’s concerns.
“The text the Commission will present today does not satisfactorily address our concerns,” the foreign minister said.
Belgium holds a significant portion of the Russian central bank’s frozen reserves, largely due to Euroclear, the Brussels-based securities depository, which makes its approval crucial for any EU-wide mechanism involving those assets. Brussels has repeatedly insisted that any use of Russian funds must comply fully with international law and must not expose EU institutions or Euroclear to legal or financial liabilities.
The EU has been working for over a year on potential pathways to use income generated by the frozen assets, and, more ambitiously, the assets themselves, to sustain Ukraine’s financial and military needs. Belgium’s latest objection adds to resistance already expressed by Slovakia, further complicating the bloc’s attempt to move forward with a unified strategy.
The Commission is still expected to publish its proposal later today, setting the stage for what is likely to become a contentious negotiation among member states.
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