EU leaders have failed to back a €140bn loan to Kyiv using frozen Russian state assets following opposition from Belgium, dashing Ukraine’s hopes of accessing funds at the beginning of next year to stave off Russia’s aggression.
EU leaders meeting on Thursday in Brussels discussed using cash arising from around €190bn in frozen sovereign Russian assets to fund a “reparations loan” for Kyiv, as efforts to end Russia’s war against Ukraine falter and the US pulls back support.
Belgium demanded cast-iron guarantees it would not suffer financially, fearing legal and financial repercussions should Russia retaliate against the plan. The assets are held at the Brussels-based Euroclear central securities depository.
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