Brussel: EU loan is the only alternative to a loan on frozen assets
BRUSSELS – The Commission had drawn up that proposal at the request of the EU member states, which last month pledged to finance Ukraine for the next two years. The way this would be done was not yet clear.
Many member states and also the Commission itself see a loan of more than 140 billion euros based on the frozen Russian assets as the best option. Belgium, where the frozen assets are held, continues to oppose this. The country still does not see enough guarantees from all EU member states to share the financial risks.
According to Commission president Ursula von der Leyen, the concerns of Belgium have been “carefully listened to” and “almost all concerns” have been taken into account in the proposal. For example, safeguards have been drawn up that should protect member states and financial institutions against possible Russian retaliatory actions. She also says that the EU will “share the burden”.
Belgian prime minister Bart De Wever already said on Wednesday morning that a reparations loan under the “current conditions” is not an option.
The alternative would be an EU loan that is separate from the EU budget, according to the Commission. Another option, that member states themselves free up money in their budgets for Ukraine, is no longer included in the Commission’s proposal.
Brussels wants EU leaders to make a clear decision during the EU summit on 18 and 19 December on which financial proposal they will agree to. Before then, representatives of the member states and the European Parliament will examine the proposals.
In this way, Brussels hopes, with a strong mandate, to make it clear to the International Monetary Fund (IMF) before the end of the year that the EU intends to borrow. This must be done either on the basis of a joint loan or on the basis of frozen assets, according to a senior EU official. From the second quarter of 2026, the money must then be available for Ukraine.
(3 December 2025)
