German Chancellor Friedrich Merz is traveling to Brussels on Friday to try to secure Belgian support for a €165 billion loan to Ukraine backed by frozen Russian state assets.
EU faces test of unity as Belgium blocks plan
The EU faces a high-stakes challenge: agreeing on a plan to fund Ukraine using frozen Russian assets. Delays and internal divisions, particularly Belgium’s objections, risk leaving Kyiv without crucial support as winter deepens and Russian attacks continue.
Merz will meet Belgian Prime Minister Bart De Wever and European Commission President Ursula von der Leyen for private talks ahead of the EU summit on 18 December, where the plan will be formally discussed.
The Brussels summit will test whether Europe can unite to back Ukraine when the stakes are highest.
Loan would tap Russian assets held at Euroclear
The proposal would tap Russian assets held in Belgium, mainly at the Euroclear financial depository, to fund Kyiv’s defense as its reserves are expected to run low in April.
De Wever has repeatedly opposed the initiative, citing legal and financial risks, including potential Russian retaliation and lawsuits. He has demanded guarantees that other EU financial institutions holding Russian funds adhere to the same standards.
Delays could force taxpayer-funded bailout
Merz’s trip underscores growing urgency. European officials warn that delays could force member states to use taxpayer money to cover Ukraine’s shortfall.
The German chancellor has argued the loan is essential not only for Ukraine’s survival but to uphold European security and show Moscow will pay for damages caused by the war.
Despite the Commission’s legal drafting, De Wever has remained unconvinced. The Belgian prime minister continues to push alternatives, including direct EU state funding or joint borrowing, but so far no consensus has emerged.
The 18 December summit is now seen as a critical moment for deciding whether the EU can advance the reparations loan or must fall back on emergency measures.
