Repair loan: the EU’s plan to help Ukraine stalls in Belgium

The European Union wants to support Ukraine with an ambitious project: a “repair loan” worth around 140 billion euros, designed to finance the country’s reconstruction and keep its economy alive during the war. However, the plan, which seemed close to approval, has now stalled due to opposition from Belgium.

The idea behind the project is as simple as it is delicate: to use frozen Russian assets in European countries as collateral for the loan. After the 2022 invasion, the EU and its allies froze hundreds of billions of euros belonging to Russia or entities linked to the Kremlin. In Europe alone, the immobilized assets are estimated to exceed 180 billion euros, most of which are held by Euroclear, a clearinghouse based in Brussels.

The loan would not amount to a confiscation, but rather a way to “advance” a future compensation payment: Ukraine would receive the funds now and repay them only once Russia agrees to pay war damages. In this way, Brussels hopes to provide tangible support without violating international rules on private property and sovereign assets[1].

The project has been blocked by Belgium, which fears finding itself on the front line both legally and financially. Since Euroclear is registered in Brussels, Belgium worries that potential lawsuits from Russia or affected investors could turn into multi-billion-euro claims against the state. There is also a bilateral treaty between Belgium and Russia that allows for international arbitration— a risk Brussels is unwilling to face alone.

There is also an issue of risk-sharing: who would pay if something went wrong? The Belgian government is demanding that any potential losses be shared among all EU member states, not just the country hosting Euroclear. Until a common formula is found, Brussels does not intend to give the green light to the plan.

European Commission President Ursula von der Leyen has confirmed that the political goal is shared by all European governments, but admitted that technical and legal details still need to be worked out. “We have decided on the what — to support Ukraine with a loan — now we must clarify the how,” she said at the end of the latest EU summit.

The “repair loan” project is seen as one of the EU’s most creative moves since the start of the war. If successful, it would send a powerful signal — transforming Kremlin-owned assets into a tool of solidarity with Kyiv. But if the plan were to fail, it would once again expose Europe’s internal divisions over how to respond to the war and its economic consequences.

For now, everything remains on hold in Brussels. And Ukraine — which is counting on European support to survive and rebuild — will have to keep waiting[2].

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