VON DER LEYEN pushes ahead with reparations loan as Belgium holds firm

Thursday, December 4, 2025 -Ursula von der Leyen, President of the European Commission, on Wednesday unveiled detailed legal proposals to launch a “reparations loan” to fund Ukraine’s wartime and reconstruction needs, backed by frozen assets belonging to Russia — assets largely held in Belgium via the depository Euroclear.

Von der Leyen argued the scheme would deliver roughly €90 billion over the next two years, covering about two-thirds of Ukraine’s immediate financial requirements, and that repayment would only be required if and when Russia pays war reparations.

Yet the plan met strong resistance from Belgium. The Belgian government — led by Bart De Wever — reiterated that using Russia’s frozen assets constitutes an unprecedented risk. Belgium fears being exposed to multibillion‑euro liabilities if legal challenges arise, or if Moscow successfully seeks restitution.

Though the Commission claims to have incorporated “almost” all Belgian concerns, including proposed guarantees and shared liability across member states, Brussels remains unconvinced. As EU leaders prepare to meet later this month, the fate of the reparations loan — and by extension Ukraine’s next financial lifeline — hangs in the balance.