Politico: EU governments oppose giving Belgium unlimited guarantees to unlock loan for Ukraine

European governments are accusing Belgium of making excessive demands for guarantees in the event that the Kremlin files a lawsuit over the use of €140 billion in frozen Russian assets held in Brussels to provide a loan to Ukraine.

Source: European Pravda, citing Politico and diplomatic sources

Details: The European Commission is about to publish the legal framework for issuing the loan, aiming to do so before April so that Ukraine's military budget does not run dry. EU leaders will give their view at a meeting in mid-December.

The so-called reparations loan is highly contentious for the Belgian government, as it would involve using the monetary value of frozen Russian state assets located on Belgian territory to provide funds to Ukraine.

Fearing Russian retaliation, Belgian Prime Minister Bart De Wever is insisting that EU governments provide Belgium with financial guarantees in excess of €140 billion that could be paid out within a matter of days. He also wants the duration of these guarantees to extend beyond the lifespan of the EU sanctions against Russia.

While European governments are willing to guarantee a pre-agreed amount, they do not want to sign what they describe as a "blank check". Four EU diplomats told Politico they cannot accept De Wever's request, as it would tie their countries' financial stability to the outcome of a court ruling – potentially obliging them to pay out billions of euros years after the end of the war in Ukraine.

"If [the guarantees] are infinite and without limits, then what are we getting ourselves into?" said an EU diplomat who, like others quoted in this story, was granted anonymity to speak freely. The question of how comprehensive the national guarantees should be is shaping up to be among the hardest in the negotiations.

"For many member states, it's politically difficult to give this blank check," said a second EU diplomat. They cautioned, however, that it is unlikely that those safety nets will ever be used because the EU's scheme is legally safe.

To secure political support, the European Commission has shown some EU ambassadors parts of its legal proposal, but the specific amount of guarantees has been left blank.

If no progress is achieved, the most likely alternative would be the issuance of additional EU debt to cover Ukraine's budget shortfall. But this option is unpopular among most EU governments, as it involves using taxpayers' money.

Background:

• Despite Belgium's resistance, the German government is counting on the EU being able to use frozen Russian state assets to finance a €140 billion loan to Ukraine.
• Belgium argues that the scheme promoted by the European Commission – providing Ukraine with "reparations loans" using frozen Russian assets – is fundamentally flawed and ignores concerns previously raised by Belgian authorities.
• Earlier, the media reported that European countries are developing a "Plan B" in case they fail to agree on using frozen Russian assets to issue a reparations loan to Ukraine so that the country does not remain without funding at the beginning of 2026.

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