Belgium rejects EU push to use frozen Russian assets for Ukraine loan

Belgium has shut down a renewed effort by four EU member states to tap into approximately €210 billion in frozen Russian central bank assets as collateral for a large-scale reparations loan to Ukraine. Defense Minister Theo Francken told Flemish broadcaster VRT that Belgium’s stance is “non-negotiable.”

The push came from ministers in Sweden, Poland, the Netherlands, and Spain, who wanted to explore options ahead of an EU foreign ministers’ meeting scheduled for early September 2026. Belgium, which hosts the vast majority of these frozen funds through Brussels-based clearinghouse Euroclear, effectively holds veto power over the proposal.

Why Belgium keeps saying no

In December 2025, Belgium torpedoed a similar proposal to use the full €210 billion as backing for a reparations-style loan to Ukraine. That rejection forced the EU to settle for a much smaller alternative: a €90 billion loan backed by the EU budget instead.

Prime Minister Bart De Wever has repeatedly flagged the threat of Russian litigation. Moscow’s central bank has already filed lawsuits against Euroclear in Russian courts. A first-instance judgment delivered in May 2026 sided with Russia, though EU authorities do not recognize rulings from Russian courts. Subsequent appeals have been rejected.

Belgium has insisted that any scheme to use the frozen assets as collateral would need robust risk-sharing guarantees from other EU member states.

The Euroclear problem

Euroclear currently manages roughly €185 billion to €202 billion of Russia’s immobilized central bank assets. These funds have been frozen since 2022, when the EU imposed sweeping sanctions after Russia’s full-scale invasion of Ukraine.

By mid-2026, approximately €6.6 billion in interest had been contributed to support Ukraine’s defense and reconstruction needs, with further payments scheduled. Belgium’s position has been to redirect this interest income while leaving the principal untouched.

Euroclear faces the legal risk of being the named defendant in Russian court proceedings, while also deriving windfall profits from managing these frozen assets.

The broader EU divide

The split within the EU maps onto a familiar fault line. Countries closer to Russia geographically or with stronger security concerns, like Poland and Sweden, tend to favor more aggressive action against Russian assets. Western European financial centers, particularly Belgium, prioritize financial stability and legal predictability.

International law has traditionally treated sovereign central bank reserves as inviolable. Seizing them, even from an aggressor state, sets a precedent that could make other countries think twice about holding assets in European financial institutions.

The four countries that made the latest push clearly believe the €90 billion wasn’t enough. Without Belgian cooperation, any plan involving the Euroclear-held assets is effectively dead on arrival, since that’s where the overwhelming majority of the frozen funds sit.