Belgian Prime Minister Bart De Wever has cautioned that the EU’s proposal to use frozen Russian state assets for funding Ukraine may undermine prospects for a future peace agreement. In a letter to European Commission President Ursula von der Leyen, he said moving too quickly on the reparations loan scheme could “effectively prevent” progress toward negotiations to end the war.
The current proposal would involve lending frozen Russian central bank assets to Ukraine for defence and budget support. Belgium’s approval is essential because most of these assets are held by the Belgian financial institution Euroclear. De Wever argued that such use of frozen wartime assets has no historical precedent and that these decisions have traditionally been made only after conflicts end.
EU leaders attempted last month to secure consensus on using €140 billion in frozen Russian assets to support Kyiv, but Belgium withheld its backing. The European Commission is expected to present new legal language to address Belgium’s concerns as it pushes to use the funds in 2026 and 2027.
Euroclear has also raised alarms, warning that the plan could be viewed as confiscation, potentially damaging Europe’s investment climate and increasing borrowing costs. Meanwhile, discussions around broader peace proposals continue, with both Russia and the US signalling that certain elements could serve as a basis for future negotiations.