EU signals flexibility as Belgium seeks stronger guarantees in Russian asset loan plan
Brussels – The European Commission has signalled its willingness to adjust its emerging framework on the use of immobilised Russian central bank assets, expressing openness to Belgium’s request for stronger guarantees as discussions progress among EU governments.
The plan involves leveraging funds generated from Russian sovereign assets held at Euroclear in Belgium to secure a loan for Ukraine, with repayment envisaged only after Russia provides compensation for wartime damages.
Belgium, which hosts one of the world’s largest securities depositories, has underlined that any legal action by Russia against Euroclear could place sizeable financial risks on the country, prompting its call for shared liability mechanisms across the bloc.
The Commission acknowledged these concerns and said it is working actively to shape a model that provides legal clarity and financial protection to both Belgium and the institutions involved in asset management.
Officials highlighted that the proposal already contains protective guarantees but affirmed that the Commission is prepared to further refine them to ensure Belgium’s confidence in the arrangement.
The position reflects a broader EU effort to maintain unity while navigating complex legal, financial and geopolitical challenges associated with utilising frozen Russian assets for Ukraine’s reconstruction and budgetary support.
The approach also aligns with the bloc’s commitment to create predictable, transparent and collectively supported mechanisms at a time when financial stability and burden-sharing remain vital for long-term assistance.
Commission representatives emphasized that the work is ongoing and that member states are steadily narrowing differences as they prepare for upcoming decisions on Ukraine’s medium-term financing requirements.
In parallel, the EU has begun discussions with G7 partners including the United States, Canada, Japan and the United Kingdom to front-load their respective contributions to Ukraine in 2026, ensuring uninterrupted support during the early months of the year.
This collaborative diplomatic outreach aims to secure a stable flow of funds as Ukraine manages budget needs, infrastructure costs and ongoing recovery planning amid continued uncertainty.
EU officials noted that these talks are yielding encouraging progress, raising confidence that Ukraine’s financing needs for the first quarter of 2026 will be fully covered through coordinated transatlantic efforts.
The emphasis on early financial mobilisation underscores the EU’s strategic intent to provide Ukraine with predictable assistance, reducing risks associated with delays or political bottlenecks among member capitals.
Belgium’s concerns have become a central part of the internal discussion, as Euroclear manages a significant volume of Russian central bank assets immobilised under EU sanctions and could be exposed to extensive litigation if the asset mechanism proceeds without sufficient safeguards.
The Commission’s warmer tone toward Belgian requests marks an important step for ensuring unity within the bloc, which remains essential for formal adoption of any asset-based financing structure.
Diplomats familiar with the talks say that flexibility from Brussels sends a reassuring signal that member states’ individual legal environments and institutional vulnerabilities will be taken seriously and addressed.
The proposed asset plan forms part of a wider EU agenda to strengthen Ukraine’s economic resilience, with long-term recovery funds viewed as central to the country’s energy stability, public administration, infrastructure renewal and fiscal security.
As the EU continues to shape the legal architecture of the plan, officials stress that cooperation with G7 partners will remain a guiding principle, creating shared transatlantic responsibility in supporting Ukraine.
The coming months will likely see further negotiations, but the Commission’s readiness to adapt shows the bloc’s intention to maintain solidarity while crafting a legally robust and financially sound mechanism.
The Commission reiterated that ensuring Ukraine receives uninterrupted support remains a top priority, and that the Union’s internal coordination and partnership with international allies are key pillars of that effort.
As discussions advance, the EU’s transparent, collaborative and precautionary approach signals a broader commitment to responsible financial governance and shared long-term responsibility for European stability.
