🔗 Share this article Russia Hits Back at the EU's Plan to Loan Immobilized Moscow's Assets to Kyiv Kyiv remains depleting its cash to keep going its armed forces and economy afloat, after close to 48 months of the ongoing invasion by Moscow. For Europe, the remedy to filling Ukraine's funding gap of €135.7bn for the following biennium lies in assets belonging to Russia that are frozen held by Belgian bank Euroclear, and Brussels hope to give it the green light at their Brussels summit next week. Russian officials warn the EU plan would be an illegal seizure, and Moscow's monetary authority announced on Friday it was taking to court Euroclear in a Moscow court prior to a conclusive plan is made. 'Appropriate' to Utilize Russia's Assets, Say Kyiv and Brussels In total, Russia has roughly €210bn of its assets frozen in the EU, and €185bn of that is managed by Euroclear. Brussels and Kyiv argue that that capital should be used to restore what Russia has devastated: EU officials refers to it as a "loan for reparations" and has devised a plan to support Ukraine's economy to the tune of €90bn. "It's only fair that Moscow's blocked funds should be used to rebuild what Russia has devastated – and that that capital then becomes Ukraine's," remarks Ukraine's Volodymyr Zelensky. Germany's leader Friedrich Merz says the assets will "enable Ukraine to shield itself effectively against subsequent Russian attacks". The legal move by Moscow was foreseen in Brussels. But it is not only Moscow that is unhappy. Belgium is worried it will be burdened by an huge bill if it all backfires, and Euroclear chief executive Valérie Urbain warns using the assets could "destabilise the global financial architecture". Euroclear also has an roughly €16-17bn locked in Russia. The leader of Belgium Bart de Wever has presented the EU with a series of "pragmatic, fair, and legitimate conditions" before he will agree to the reparations plan, and he has not excluded legal action if it "carries significant risks" for his country. What is the EU's Proposal? European Union officials is racing against time before next Thursday's summit to finalize a compromise that Belgium can agree to. Previously the EU has refrained from using the assets themselves directly but starting in 2024 has transferred the "extraordinary revenues" from them to Ukraine. In 2024 that was €3.7bn. Juridically, using the interest is seen as less risky as Russia is under sanction and the earnings are not Moscow's sovereign assets. But international military aid for Ukraine has fallen significantly in 2025, and Europe has found it difficult to make up the shortfall resulting from the US decision to virtually halt funding Ukraine under President Donald Trump. There are currently two EU proposals seeking to providing Ukraine with €90bn, to pay for a majority of its funding needs. One is to secure the capital on financial markets, secured against the EU budget as a surety. This is Belgium's first choice but it requires a unanimous vote by EU leaders and that would be problematic when Budapest and Bratislava object to funding Ukraine's military. That leaves lending Ukraine cash from the Russian assets, which were originally held in bonds but have now predominantly been converted into cash. That capital is Euroclear property located within the European Central Bank. The EU's executive acknowledges Belgium has valid worries and claims it is assured it has resolved them. The plan is for Belgium to be safeguarded with a assurance encompassing all the €210bn of Russian assets in the EU. Should Euroclear face a financial hit of its own assets in Russia, the loss would be compensated from assets belonging to Russia's own settlement agency which are in the EU. Should Russia went after Belgium itself, any decision by a Russian court would not be accepted in the EU. As an important step, EU ambassadors are expected to agree on Friday to immobilise Russia's central bank assets held in Europe permanently. Until now they have had to vote unanimously every six months to extend the freeze, which could have meant a constant risk to Belgium. The EU ambassadors are expected to use an extraordinary measure under Article 122 of the EU Treaties so the assets remain frozen as long as an "direct danger to the economic interests of the union" continues. Why Belgium is Not Yet Satisfied Brussels is insistent it remains a strong supporter of Ukraine, but sees juridical dangers in the plan and fears being forced to deal with the fallout if things fail. A usually divided political landscape in this case has rallied behind Prime Minister Bart de Wever, who is being pressured from fellow EU leaders. "Belgium has a modest-sized economy. Belgian GDP is approximately €565bn – consider if it would need to carry a €185bn bill," says Veerle Colaert, professor of financial law at KU Leuven University. While the EU might be able to obtain adequate assurances for the loan itself, Belgium worries about an added risk of being vulnerable to extra damages or penalties. Prof Colaert also believes the requirement for Euroclear to issue credit to the EU would contravene EU banking regulations. "Financial institutions need to adhere to capital and liquidity requirements and shouldn't put all their eggs in one basket. Now the EU is telling Euroclear to do just that. "What is the purpose of these financial regulations? It's because we want banks to be secure. And if things go wrong it would be up to Belgium to rescue Euroclear. That's another reason why it's so vital for Belgium to get absolute assurances for Euroclear." EU Leaders In a Difficult Position from Multiple Fronts Time is of the essence, caution a group of EU member states including those closest to Russia such as the Baltics, Finland and Poland. They argue the scheme involving immobilized capital is "the most fiscally viable and politically realistic solution". "It's a matter of destiny for us," warns leading German conservative MP Norbert Röttgen. "Should we not succeed, I don't know what we'll do next. That's why we have to finalize the deal in a week's time". While Russia is insistent its money should not be used, there are further worries among leaders in Europe that the US may want to employ Russia's frozen billions in another way, as part of its own peace initiative. Zelensky has stated Ukraine is working with Europe and the US on a reconstruction fund, but he is also cognizant the US has been holding discussions with Russia about potential collaboration. An early draft of the US peace plan mentioned $100bn of Russia's frozen assets being used by the US for reconstruction, with the US {taking|receiving
Kyiv remains depleting its cash to keep going its armed forces and economy afloat, after close to 48 months of the ongoing invasion by Moscow. For Europe, the remedy to filling Ukraine's funding gap of €135.7bn for the following biennium lies in assets belonging to Russia that are frozen held by Belgian bank Euroclear, and Brussels hope to give it the green light at their Brussels summit next week. Russian officials warn the EU plan would be an illegal seizure, and Moscow's monetary authority announced on Friday it was taking to court Euroclear in a Moscow court prior to a conclusive plan is made. 'Appropriate' to Utilize Russia's Assets, Say Kyiv and Brussels In total, Russia has roughly €210bn of its assets frozen in the EU, and €185bn of that is managed by Euroclear. Brussels and Kyiv argue that that capital should be used to restore what Russia has devastated: EU officials refers to it as a "loan for reparations" and has devised a plan to support Ukraine's economy to the tune of €90bn. "It's only fair that Moscow's blocked funds should be used to rebuild what Russia has devastated – and that that capital then becomes Ukraine's," remarks Ukraine's Volodymyr Zelensky. Germany's leader Friedrich Merz says the assets will "enable Ukraine to shield itself effectively against subsequent Russian attacks". The legal move by Moscow was foreseen in Brussels. But it is not only Moscow that is unhappy. Belgium is worried it will be burdened by an huge bill if it all backfires, and Euroclear chief executive Valérie Urbain warns using the assets could "destabilise the global financial architecture". Euroclear also has an roughly €16-17bn locked in Russia. The leader of Belgium Bart de Wever has presented the EU with a series of "pragmatic, fair, and legitimate conditions" before he will agree to the reparations plan, and he has not excluded legal action if it "carries significant risks" for his country. What is the EU's Proposal? European Union officials is racing against time before next Thursday's summit to finalize a compromise that Belgium can agree to. Previously the EU has refrained from using the assets themselves directly but starting in 2024 has transferred the "extraordinary revenues" from them to Ukraine. In 2024 that was €3.7bn. Juridically, using the interest is seen as less risky as Russia is under sanction and the earnings are not Moscow's sovereign assets. But international military aid for Ukraine has fallen significantly in 2025, and Europe has found it difficult to make up the shortfall resulting from the US decision to virtually halt funding Ukraine under President Donald Trump. There are currently two EU proposals seeking to providing Ukraine with €90bn, to pay for a majority of its funding needs. One is to secure the capital on financial markets, secured against the EU budget as a surety. This is Belgium's first choice but it requires a unanimous vote by EU leaders and that would be problematic when Budapest and Bratislava object to funding Ukraine's military. That leaves lending Ukraine cash from the Russian assets, which were originally held in bonds but have now predominantly been converted into cash. That capital is Euroclear property located within the European Central Bank. The EU's executive acknowledges Belgium has valid worries and claims it is assured it has resolved them. The plan is for Belgium to be safeguarded with a assurance encompassing all the €210bn of Russian assets in the EU. Should Euroclear face a financial hit of its own assets in Russia, the loss would be compensated from assets belonging to Russia's own settlement agency which are in the EU. Should Russia went after Belgium itself, any decision by a Russian court would not be accepted in the EU. As an important step, EU ambassadors are expected to agree on Friday to immobilise Russia's central bank assets held in Europe permanently. Until now they have had to vote unanimously every six months to extend the freeze, which could have meant a constant risk to Belgium. The EU ambassadors are expected to use an extraordinary measure under Article 122 of the EU Treaties so the assets remain frozen as long as an "direct danger to the economic interests of the union" continues. Why Belgium is Not Yet Satisfied Brussels is insistent it remains a strong supporter of Ukraine, but sees juridical dangers in the plan and fears being forced to deal with the fallout if things fail. A usually divided political landscape in this case has rallied behind Prime Minister Bart de Wever, who is being pressured from fellow EU leaders. "Belgium has a modest-sized economy. Belgian GDP is approximately €565bn – consider if it would need to carry a €185bn bill," says Veerle Colaert, professor of financial law at KU Leuven University. While the EU might be able to obtain adequate assurances for the loan itself, Belgium worries about an added risk of being vulnerable to extra damages or penalties. Prof Colaert also believes the requirement for Euroclear to issue credit to the EU would contravene EU banking regulations. "Financial institutions need to adhere to capital and liquidity requirements and shouldn't put all their eggs in one basket. Now the EU is telling Euroclear to do just that. "What is the purpose of these financial regulations? It's because we want banks to be secure. And if things go wrong it would be up to Belgium to rescue Euroclear. That's another reason why it's so vital for Belgium to get absolute assurances for Euroclear." EU Leaders In a Difficult Position from Multiple Fronts Time is of the essence, caution a group of EU member states including those closest to Russia such as the Baltics, Finland and Poland. They argue the scheme involving immobilized capital is "the most fiscally viable and politically realistic solution". "It's a matter of destiny for us," warns leading German conservative MP Norbert Röttgen. "Should we not succeed, I don't know what we'll do next. That's why we have to finalize the deal in a week's time". While Russia is insistent its money should not be used, there are further worries among leaders in Europe that the US may want to employ Russia's frozen billions in another way, as part of its own peace initiative. Zelensky has stated Ukraine is working with Europe and the US on a reconstruction fund, but he is also cognizant the US has been holding discussions with Russia about potential collaboration. An early draft of the US peace plan mentioned $100bn of Russia's frozen assets being used by the US for reconstruction, with the US {taking|receiving