Belgium urges EU partners to share the risk of using frozen Russian assets

Belgian Prime Minister Bart De Wever said Thursday that his European partners must share the risk of using billions of dollars in frozen Russian assets held in Belgium to help sustain Ukraine’s economy and military efforts in the coming years, according to the Associated Press.

Ukraine’s budget and military needs for 2026 and 2027 are estimated at around $153 billion, and the European Commission is developing a plan to use frozen Russian assets as collateral to raise funds.

The largest tranche of these assets—about $225 billion—is held in Belgium. The government fears using these funds without firm guarantees from other EU countries.

“If we want to transfer them to Ukraine, we must do it together,” De Wever told reporters at an EU summit in Brussels. “Otherwise, any Russian retaliatory measures would affect only Belgium. That’s not very wise.”

He added, “We are a small country, and the countermeasures could be very harsh. They could seize all Western bank funds in Russia as well as companies owned by European firms in Russia.”

The European Commission has referred to this plan as a “compensation loan.” Essentially, EU countries would guarantee Ukraine a loan of about $165 billion using European funds—not the frozen assets themselves. Ukraine would repay the EU only after Russia provides significant military reparations for the damage it caused. If Moscow refuses, the assets remain frozen. Russia has previously warned against such a move.

Commission President Ursula von der Leyen emphasized, “We are not confiscating assets, but taking the cash balances to provide a loan to Ukraine.” She added that Ukraine must repay the loan if Russia pays reparations.

“Russia is the aggressor. It caused the damage and must be held accountable,” von der Leyen said. She also stated that her team had found “a reliable legal way to do this” and to bring reluctant member states on board.

De Wever stressed Thursday that he wants to see how this will work in practice. “I haven’t even seen the legal basis for this decision,” he said. “It seems to me a first step if you want to make such a major decision. This has never been done before. Not even during World War II, so this is not a small detail.”

The European Central Bank and other eurozone countries have also expressed concern that such a step could undermine international confidence in the euro.

The EU hopes other countries will take similar measures if Belgium joins the agreement. Outside the bloc, some G7 countries also hold frozen Russian assets: Japan around $50 billion, the U.S. $8–9 billion, and smaller amounts in the UK and Canada. Interest earned on frozen assets is already being used to fund the G7 loan program for Ukraine and will not affect this new plan.