Business & Economics
EU Scrambles After Belgian Veto of €140 B Russian-Asset Loan for Ukraine
Belgium’s last-minute refusal to back a €140 billion loan collateralised by frozen Russian reserves forced the European Commission on 18 November 2025 to circulate an “options paper” giving leaders until the 18-19 December summit to pick alternative ways to fund Kyiv.
Focusing Facts
- On 18 Nov 2025, Belgium blocked the plan to raise €140 billion for Ukraine by leveraging Russian central-bank assets held at Euroclear, torpedoing the scheme that required unanimous consent.
- Ursula von der Leyen’s 12-page letter outlines three choices—national grants, joint EU borrowing, or the frozen-asset loan—and demands a decision before the European Council meeting of 18-19 Dec 2025.
- The IMF estimates Ukraine’s 2026-27 financing gap at roughly $65 billion even if hostilities end by late 2026.
Context
Great-power wars have repeatedly rearranged who pays whose bills: after 1871 France’s indemnity to Germany rewired European finance, while the 1948 Marshall Plan entrenched US dollar dominance. Brussels’ current dilemma sits at a similar hinge—whether the EU evolves into a de-facto fiscal union willing to mutualise wartime risk, or retreats to loose confederation norms. Weaponising sovereign reserves also echoes America’s 1979 seizure of Iranian assets; that move still drives many states to diversify away from the dollar. If Europe now taps or even just pledges Russian funds, the euro’s desirability as a reserve currency could erode, yet failing to bankroll Kyiv could hasten a Russian victory and upend Europe’s security architecture. A century from now, historians may judge this winter’s decision less by its legal finesse than by whether it signaled Europe’s capacity—or incapacity—to act collectively under pressure.
Perspectives
Mainstream pro-EU media
POLITICO, The Boston Globe, Euronews — They argue the EU must swiftly back a €140 billion loan for Ukraine using frozen Russian assets because alternative funding plans are slower, costlier and would signal wavering resolve against Putin. Heavily sourced to Commission officials and Western analysts, these outlets downplay Belgium’s legal worries and potential market backlash to keep diplomatic pressure on hold-out governments.
Russian state-run media
TASS — Presents von der Leyen’s call for new Ukraine aid as reckless, quoting Viktor Orban’s claim that sending more money is like giving vodka to an alcoholic and declaring Hungary will not back the plan. Selectively highlights intra-EU dissent to erode European unity and omits discussion of Russian culpability or Ukraine’s financial crisis, fitting Moscow’s strategic narrative.
Brussels policy critics and insider commentary
EurActiv — Contends the Commission admits the asset-backed loan could spook investors yet still offers only vague ‘concerted effort’ fixes, leaving Belgium’s concerns largely unanswered two months on. By foregrounding institutional flaws and worst-case market scenarios, this stance may exaggerate financial dangers and understate the military urgency driving Kyiv’s request for help.