The European Commission is prepared to incorporate additional guarantees that Belgium is seeking into the plan to use immobilized Russian central bank assets for providing loans to Ukraine, European Economic Commissioner Valdis Dombrovskis announced on 12 December following a meeting of EU finance ministers.
The EU scheme envisions using Russian sovereign assets held in Euroclear, the Belgian central securities depository, to finance a loan to Ukraine that would only be repaid once Russia pays war damages to Kyiv. However, Belgium has conditioned its approval on receiving commitments from other EU member states to share any potential financial burden arising from legal action Russia might take against Euroclear.
"We are putting forward solid guarantees for Belgium and also financial institutions in our proposal," Dombrovskis told a news conference. "But from the Commission side, we are open to work further and see how to further accommodate Belgium's concerns, and this work is ongoing as we speak."
According to Reuters, the negotiations come as the EU faces a timeline pressure. Dombrovskis indicated that Ukraine will require EU funding starting from the second quarter of 2026. To bridge the gap, the Commission is coordinating with other G7 countries—the United States, Canada, Japan, and Britain—to front-load their financial assistance to Ukraine in the first quarter of next year.
"We are making progress on this, and it looks like we'll be able to cover the financing need for Ukraine for the first quarter," Dombrovskis said.
The dispute over guarantees reflects broader tensions around the handling of Russian assets. Politico previously reported that EU countries have accused Belgium of withholding complete information about how it manages tax revenues generated from these funds, with particular scrutiny directed at Prime Minister Bart De Wever's government.
The resolution of Belgium's concerns is crucial for the implementation of the loan mechanism, which represents a significant portion of Western financial support for Ukraine as the war continues.
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