Belgium wants cover as the EU leverages frozen Russian assets.

Belgium is pressing fellow European Union members to share financial and legal exposure linked to a proposed €140bn interest-free loan for Ukraine underpinned by frozen Russian assets. With most of the assets parked at Euroclear, the Belgium-based securities clearer, Brussels is seeking assurances ahead of an EU summit on 23 October.

The European Commission is drawing up plans to deploy more than €170bn tied to Russian state bonds to back the new facility and to help repay an earlier Group of Seven loan to Kyiv. Under the scheme, Ukraine would only need to repay if Russia agrees to cover war reparations as part of a peace settlement, providing immediate budget relief without the outright confiscation of Russian funds.

Belgium fears it could be left bearing the brunt of any financial or legal fallout because Euroclear falls under Belgian jurisdiction. Prime Minister Bart De Wever has argued that risk-sharing guarantees should not be limited to the proposed €170bn in cash and wants a commitment that EU partners would cover any shortfall if Euroclear is later compelled to return assets as part of a peace deal. Belgium opposes wholesale seizure of Russian holdings and is seeking a legally robust arrangement that spreads liabilities across the bloc.

Kyiv’s Western allies immobilised roughly $300bn in Russian sovereign assets at the start of the full-scale war, about two-thirds of it in Europe. With Ukraine facing a widening budget gap as the conflict grinds on and external funding wanes, EU capitals are trying to secure Belgium’s consent to avoid delays to a flagship financing plan. The push for shared guarantees underscores the legal and political constraints surrounding the use of frozen Russian assets to support Ukraine.