Belgium Demands Guarantees Before Supporting Ukraine Loan Plan

Belgium has made it clear that it will not support a substantial loan for Ukraine unless it receives firm assurances of protection against potential Russian retaliation. During a pivotal European Union summit in Brussels, leaders from the 27-member bloc are deliberating the deployment of tens of billions of euros in frozen Russian assets to finance Ukraine’s military and financial requirements over the next two years.

As of September, approximately 193 billion euros in frozen assets are held by Euroclear, a financial clearinghouse located in Brussels. The situation intensified recently when Russia’s Central Bank filed a lawsuit against Euroclear, raising concerns among European leaders. Belgian Prime Minister Bart De Wever expressed his apprehensions to parliament, stating, “Give me a parachute and we’ll all jump together. If we have confidence in the parachute that shouldn’t be a problem.”

Belgium’s hesitance stems from fears that Russia may respond aggressively if the EU moves forward with the loan. De Wever has suggested that the bloc should consider borrowing funds from international markets instead. Additionally, he has urged that frozen assets from other European nations be included in the financial package, alongside guarantees that Euroclear will maintain sufficient resources if legal challenges arise.

European officials have pointed to an ongoing campaign of sabotage and disruption initiated by Russia across the continent. The lawsuit filed by the Central Bank has increased the urgency for Belgium and its EU partners to come to a consensus ahead of the summit. Under the proposed “reparations loan” plan, the EU would allocate 90 billion euros to Ukraine, while nations such as the UK, Canada, and Norway would help cover any funding gaps. Although Russia’s claim to these assets remains intact, they would remain inaccessible until the Kremlin concludes its military actions against Ukraine and compensates for the extensive damages incurred over four years of conflict.

The European Commission has developed safeguards to alleviate Belgium’s concerns, but De Wever has indicated that he has yet to see a satisfactory resolution. “I have not yet seen a text that could satisfactorily address Belgium’s concerns,” he remarked, emphasizing Belgium’s position as a “faithful ally” of Ukraine and its commitment to aid the country.

The urgency of the situation is underscored by the International Monetary Fund’s estimation that Ukraine requires 137 billion euros to avoid bankruptcy, with funds needed by spring. European Commission President Ursula von der Leyen reiterated the necessity to find a solution, stating, “We will not leave the European Council without a solution for the funding of Ukraine for the next two years.”

EU Council President Antonio Costa, who is overseeing the meeting, has affirmed his commitment to prolonged negotiations until an agreement is reached, even if it takes several days. Polish Prime Minister Donald Tusk emphasized the urgency, stating, “Now we have a simple choice. Either money today or blood tomorrow,” and called on all European leaders to rise to the occasion.

EU envoys have been working tirelessly in recent weeks to finalize the loan details and bridge differences among member countries. However, if sufficient nations oppose the plan, it could face significant hurdles. There is currently no majority support for an alternative approach of sourcing funds through international markets.

German Chancellor Friedrich Merz expressed hope that Belgium’s concerns could be addressed, citing recent remarks from the Russian president as a reminder of the necessity for action. Merz stated, “We are basically faced with the choice of using European debt or Russian assets for Ukraine, and my opinion is clear: we must use the Russian assets.”

Opposition to the reparations loan plan is also voiced by Hungary and Slovakia. Hungarian Prime Minister Viktor Orban, who considers himself a peacemaker and is a close ally of Russian President Vladimir Putin, expressed his reservations, stating, “To give money means war.” He further criticized the loan plan as “a dead end” and deemed the entire idea “stupid.”

As discussions continue, Belgium’s demand for assurances remains a critical factor in the EU’s efforts to assist Ukraine during this challenging period.