BRUSSELS, Dec 18: Belgium is demanding firm guarantees from its European Union partners that it will be protected from Russian retaliation before backing a proposed massive loan for Ukraine, as EU leaders meet in Brussels to decide on the plan.
The proposal would use profits from tens of billions of euros in frozen Russian assets to underwrite up to €90 billion in loans to support Ukraine’s military and financial needs over the next two years.
Most of the frozen assets—around €193 billion—are held at Brussels-based clearing house Euroclear, making Belgium particularly vulnerable. Russia’s central bank recently filed a lawsuit against Euroclear, increasing pressure on Belgium. Prime Minister Bart De Wever said Belgium needs “ironclad” safeguards, likening the situation to jumping with a parachute that must be fully trusted.
Belgium wants broader sharing of risk, including the inclusion of frozen assets held in other EU countries and guarantees that Euroclear would be financially protected if targeted by legal action.
EU officials say Russia is already waging a campaign of sabotage and disruption across Europe, and fear that retaliation could intensify if the loan goes ahead.
While the European Commission has proposed safeguards, De Wever said they remain insufficient, though he stressed Belgium’s continued support for Ukraine.
EU leaders have pledged to cover most of Ukraine’s funding needs in 2026 and 2027, estimated by the IMF at €137 billion, as the country faces severe financial strain. European Commission President Ursula von der Leyen and EU Council President António Costa urged swift agreement, warning of dire consequences if support falters.
The plan faces opposition from Hungary and Slovakia, with several other countries undecided.
Failure to reach consensus could weaken Europe’s role in ending the war and complicate EU decision-making. Even if approved, legal and parliamentary hurdles remain before funds can be disbursed. (AP)
