The European Commission will provide Belgium with sweeping guarantees to unblock a controversial reparations loan for
Ukraine, Ursula von der Leyen has said, forging ahead with the plan despite risks deemed "disastrous" by Belgian
The guarantees, outlined in legal texts presented on Wednesday, consist of bilateral contributions by member states, a
backstop by the EU budget, legal safeguards against retaliation and a new prohibition on transferring sovereign assets
It is the boldest and most comprehensive attempt by the Commission to overcome Belgium's resistance before a crucial EU
summit on 18 December. Ukraine has said it would need a fresh injection of foreign funding as early as spring next year.
"We have created a very strong solidarity mechanism where in the very end the Union can intervene, because we want to
make very sure to all our member states, but specifically also to Belgium, that we will share the burden in a fair way,
as it is the European way," von der Leyen said.
"We are sending a very strong signal to the Ukrainian people that we are in for the long haul. We can equip them with
the means to defend themselves and, even more important, with the means to lead peace negotiations from a position of
The reparations loan is von der Leyen's preferred option to cover Ukraine's financial and military needs for the next
two years, estimated at €135 billion. The EU is meant to contribute at least €90 billion, with the rest backed by other
Western allies, which do not include the United States, as it no longer provides external support.
Under the untested scheme, the Commission would channel the immobilised assets of the Russian Central Bank into a
zero-interest line of credit for Ukraine.
Kyiv would be asked to repay the loan only after Moscow agreed to compensate for the damages caused by its war of
aggression – a virtually unthinkable scenario.
The bulk of the assets, about €185 billion, are held at Euroclear, a central securities depository in Brussels. There
are €25 billion in other locations across the bloc.
This means Belgium holds the cardinal vote in negotiations.
Since the start of discussions in September, Belgium has firmly demanded bulletproof and all-encompassing guarantees
from other member states to shield itself against Moscow's scorched-earth retaliation and prevent multi-billion-euro
Another key worry is that the sanctions behind the assets, which are subject to renewal by unanimity, might be derailed
by a single country's veto. A premature lifting of the restrictions would release the Russian funds and precipitate the
The European Central Bank has declined to provide an emergency liquidity backstop to help governments raise the
necessary cash to protect Euroclear.
Belgium's unwavering resistance
Even before von der Leyen took the stage, Belgium dug its heels in.
Earlier on Wednesday, Belgian Foreign Minister Maxime Prévot said the reparations loan was "the worst" of the three
available financial options to support Ukraine.
"Our door has always remained open and still is. However, we have the frustrating feeling of not having been heard. Our
concerns are being downplayed," Prévot said before heading into a ministerial meeting of NATO.
The Commission's proposals "do not address our concerns in a satisfactory manner. It is not acceptable to use the money
and leave us alone facing the risks," he added, suggesting that he was aware of the content of the legal documents
before they were made public by the head of the Commission.
Prévot said that for the loan to move ahead, his country would require guarantees that "go beyond" Euroclear and
Belgium, easily exceeding €185 billion of the assets.
"We are not seeking to antagonise our partners or Ukraine," he said. "We are simply seeking to avoid potentially
disastrous consequences for a member state that is being asked to show solidarity without being offered the same
In her presentation, von der Leyen sought to address the Belgian reservations with broader guarantees – backed by both
member states and the EU budget – that Euroclear will have liquidity at all times to honour the claim of the Russian
The guarantees will also cover any potential awards from arbitration and be complemented by safeguards to nullify
retaliation against European property.
Additionally, the EU will introduce a novel measure to prohibit the return of sovereign assets to Russia. The law will
be based on Article 122 of the treaties, which has been used only for economic emergencies, and approved by a qualified
majority. In practice, it will defang individual vetoes and prevent a sudden removal of sanctions.
In yet another overture to Belgium, von der Leyen opened the door to using the entire pool of €210 billion in Russian
sovereign assets across the bloc and invited other G7 allies, like Canada, the UK and Japan, to mimic the instrument.
However, it is unclear if the offering will be enough to convince Belgium.
Last week, Belgian Prime Minister Bart De Wever said that prolonging the sanctions by a qualified majority would
"enhance the practical appearance that sanctions are open-ended, effectively permanent and thus expropriatory in
"These risks are unfortunately not academic but real," De Wever said.
If no deal is found on the reparations loan, the EU will resort to joint borrowing, as it did during the COVID-19
pandemic, von der Leyen said on Wednesday.
The issuance would amount to about €45 billion for 2026 alone.
The option of common debt, advocated by Belgium, would leave the Russian assets untouched and avoid any legal pitfalls.
But the idea is opposed by the vast majority of member states because of the immediate impact it would have on national
The Russian assets, paralysed under sanctions since early 2022, have been thrust into the negotiations launched by the
United States to end the war in Ukraine.
The original 28-point peace plan, secretly drafted by US and Russian officials without European input, featured a highly
controversial ideato employ the sovereign assets into investment vehicles for Washington's and Moscow's commercial
The model caused outrage among Europeans, who quickly closed ranks to stress that any decision under their direct
jurisdiction would be for them to make.
While the draft text has considerably changed after several rounds of talks between Ukrainians and Americans, the fate
of the assets remains up for grabs.
"The most sensitive things and the most difficult questions are about territories, about frozen assets," President
Volodymyr Zelenskyy said on Tuesday.
"I can't speak on behalf of European leaders about frozen money in Europe. I can only share my view, and they can
"What matters is that everything is fair and transparent. That there are no games played behind Ukraine's back."
In his scathing letter to von der Leyen, De Wever warned that moving forward with the reparations loan at this stage
"would have, as collateral damage, that we, as the EU, are effectively preventing reaching an eventual peace deal".
On Wednesday, von der Leyen directly countered De Wever's point, arguing the reparations loan will instead help advance
peace talks by showcasing the European resolve to support Ukraine in the long term. She said she had discussed the
initiative with US Treasury Secretary Scott Bessent and that it was "positively received".
"Russia has done everything to prolong the war and is, so far, not willing, for example, to come to the negotiation
table that President Zelenskyy constantly offers, and President Putin does not show up," von der Leyen said.
"It is a very clear message also to Russia that the prolongation of the war on their side comes with a high cost for
Ambassadors will begin discussions on the legal texts later on Wednesday, following von der Leyen's anticipated
presentation. The goal is to have a deal when EU leaders meet in mid-December for a make-or-break summit, which means a
Adding to the pressure is an $8.1 billion programme that the International Monetary Fund (IMF) is meant to grant
Ukraine. For the IMF to make a final decision, it will need firm commitments by European allies to ensure Kyiv's
macro-economic stability.
Strictly speaking, the main text of the reparations loan can be approved by a qualified majority, which means that, in
theory, Belgium could be overruled. But officials and diplomats admit that such a scenario would be politically