On Wednesday, December 3, 2025, Belgium officially rejected a European Union proposal to use profits from frozen Russian central bank assets as collateral for a major reparations loan to Ukraine.
Belgian Deputy Prime Minister and Foreign Minister Maxime Prevot said the plan fails to address the financial and legal risks Belgium would face. He told reporters he feels 'not heard' and that the country's concerns are being downplayed.
The European Commission is expected to publish details of its proposal later today, aiming to mobilize around €140 billion in profits generated by roughly €90 billion of Russia's frozen central bank assets held at Brussels-based securities depository Euroclear.
Belgium's objections have grown louder this year. Last week, Belgian Prime Minister Bart De Wever sent a letter to European Commission President Ursula von der Leyen, calling the plan 'fundamentally flawed' and warning it could violate international law without proper safeguards.
Prevot argued that using Russian assets without fully indemnifying Belgium from any financial fallout would be the worst option. He stressed any scheme must 'fully cover' the risks borne by Belgium.
The debate highlights the delicate balance the EU faces as it looks for innovative ways to support Ukraine's reconstruction without exposing member states to undue risk. With internal divisions emerging at a time of heightened geopolitical tensions, the final proposal will test the bloc's unity.
For businesses, investors, and policy makers across the G20, this standoff underlines the challenges of harnessing frozen assets in support of war-torn economies while managing legal and financial exposures.
The coming days will reveal whether the European Commission can bridge the gap between its bold funding ambition and member states' demand for strong risk protection.
Reference(s):
cgtn.com
