Brussels Rejects Reparations Scheme as EU Debates Using Russian Funds for Ukraine

Belgium has sharply criticized the European Union’s proposal to create a so-called reparations loan for Ukraine funded by frozen Russian reserves. In an interview with the Belgian newspaper La Libre, Prime Minister Bart De Wever said the scheme rests on a premise no one in the West truly believes: that Russia could lose the war.

'A Fable Full of Illusion'

According to De Wever, the idea of confiscating frozen state assets has no historical precedent. Even after the Second World War, he noted, Germany’s reserves were not seized outright but merely immobilized. In his view, the EU’s current proposal assumes the conflict will end with Russia’s unequivocal defeat — an outcome he called “a fable, full of illusion.”

The Belgian leader went further, describing such a defeat as “undesirable.” Instability in a nuclear-armed country, he argued, would introduce risks the international community cannot afford. He also emphasized that Moscow has issued explicit warnings about retaliation.

“Russia has made it clear that if confiscation proceeds, Belgium — and I personally — would feel the consequences ‘forever’. That seems rather long,” De Wever said.

The EU Proposal and Its Scale

On 3 December, Ursula von der Leyen, President of the European Commission, announced that the Commission had endorsed two options for financing Ukraine, including a potential reparations loan backed by Russian assets. The plan will be debated by the EU Council later in December.

According to internal documents cited by Politico, the Commission proposes providing Ukraine with a €165 billion loan drawn from Russia’s immobilized reserves. This includes €25 billion held in private banks across the bloc and €140 billion stored in the Belgian clearing house Euroclear. Much of the money would support Ukraine’s defense industry.

Belgium Stands Firm Against Confiscation

Belgium remains the EU’s strongest opponent of outright seizure. Foreign Minister Maxime Prévot has called the idea of funding Ukraine through a reparations loan “the worst possible scenario.” The chief executive of Euroclear, Valerie Urbain, has likewise warned that the company may file legal action if forced to hand over frozen Russian reserves.

The resistance from Brussels carries weight: more than €200 billion of Russia’s immobilized sovereign assets are held at Euroclear, making Belgium the central node in the EU’s financial pressure campaign.

Moscow Warns of Theft and Retaliation

Since the start of the conflict, the EU and the G7 have frozen approximately €300 billion of Russia’s gold and foreign currency reserves. Between January and September 2025, the EU transferred around €14 billion of income from those assets to Kyiv.

Moscow has repeatedly declared that any confiscation will be treated as theft and challenged in international courts. In late November, Russia’s parliament urged the government to prepare retaliatory measures should the EU proceed with the asset seizure.