Belgium has warned it will block a proposed reparations loan to Ukraine backed by frozen Russian assets unless other EU countries agree to share legal and financial risks, Belgian Prime Minister Bart De Wever said, reported Ukraine Business News.

De Wever stressed that Belgium, which hosts the Euroclear depository where a significant portion of Russia’s immobilised reserves are held, wants guarantees from all EU member states before approving the mechanism. “We must all move together,” he said, adding that Belgium also expects other countries with Russian assets to begin using them to support Ukraine. If these conditions are not met, “I will do everything possible” to block the initiative, he warned.

The EU is planning a €140bn programme backed by profits from frozen Russian assets to support Ukraine’s 2026–2027 budget and military needs. According to Vladyslav Rashkovan, Ukraine’s envoy to the IMF, €40bn of the funds would be allocated to cover Kyiv’s budget deficit, with €100bn earmarked for defence.

The European Commission aims to create a legal framework by mid-November, with the instrument expected to become operational in early 2026 once member states provide guarantees to cover potential Russian legal claims. Rashkovan said Ukraine may also secure $8–8.5bn under a new IMF programme, but still faces a $6–7bn funding gap.

EU foreign policy chief Kaja Kallas said approving the loan would send a strong signal to Ukraine, Russia and the United States, where President Donald Trump has halted financial aid to Kyiv. European Council President Antonio Costa assured President Volodymyr Zelenskiy that EU leaders would reach a decision on financing for 2026–2027.

France has urged that reparations funds be spent within Europe to strengthen the bloc’s defence industry. Kyiv insists it needs flexibility in how the funds are used and wants resources allocated before the end of the year.