EU pushes to use Russian funds to support Ukraine
European Commission President Ursula von der Leyen announced on Wednesday a plan to provide Kiev with €90 billion over the next two years.
The Commission has outlined two potential financing strategies. The first involves EU-level borrowing, with funds raised on capital markets backed by the bloc’s budget, but this approach requires unanimous approval from all member states, making it unlikely to succeed.
The second option is the long-discussed “reparations loan,” which would have financial institutions holding frozen Russian assets transfer them into a new loan instrument for Ukraine.
Under this arrangement, Ukraine would only repay the loan if and when Russia pays reparations. This mechanism requires a qualified majority rather than unanimity, increasing the likelihood of adoption.
Belgium, home to Euroclear—the clearing house holding most of the frozen Russian reserves—has been the most vocal opponent of the reparations loan, citing significant financial and legal risks and urging EU partners to share responsibility for any negative outcomes.
Belgian Foreign Minister Maxime Prevot called the proposal the “worst of all” options, accusing the Commission of advancing it without adequately addressing Belgium’s concerns. Prime Minister Bart De Wever criticized the plan as “a complete illusion,” arguing it is unrealistic to believe Kiev could compel Moscow to pay reparations.
Von der Leyen, however, has defended the Commission’s approach, asserting that it “listened very carefully” to Belgium’s objections and “took almost all of them into account.”
Because the measure falls under policy areas decided by qualified majority voting, it can move forward with the support of 15 member states, preventing any single country from blocking it.
Russia has condemned the proposal, labeling the use of its sovereign assets as theft and warning of extensive legal and retaliatory consequences.
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