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Belgium has emerged as the biggest obstacle to the European Union’s plan to unlock €140 billion in frozen Russian central bank assets held at Euroclear, triggering a major political and financial standoff inside the EU. Belgian Prime Minister Bart de Wever refuses to support the proposal to use these funds for a €165 billion reparations loan for Ukraine, warning that Belgium would face catastrophic legal and financial risks if Russia retaliates in court. Brussels fears it could be held liable for the full amount, creating a massive debt burden for Belgian taxpayers and Euroclear.
EU leaders—including Friedrich Merz and Ursula von der Leyen—have intensified pressure, accusing Belgium of acting like “the new Orbán” and shielding Moscow’s interests. Leaked EU cables show threats to withhold funding and pursue infringement actions if Belgium does not back down. The deadlock has opened a critical funding gap for Ukraine heading into 2026, with Kyiv facing a potential €38 billion shortfall while Russian drone attacks escalate. The standoff now raises urgent questions about EU unity, Belgium’s geopolitical motives, and whether Europe can agree on a solution before the December summit.
00:00Belgian Prime Minister Bart Deweyver has emerged as the principal political blocker of the European Union's plan to unlock approximately 140 billion euro in frozen Russian central bank assets held at Euroclear, a Brussels-based financial depository to fund a massive reparations loan for Ukraine.
00:25The EU Commission, backed by German Chancellor Friedrich Merz and European Commission President Ursula von der Leyen, has proposed a 165 billion euro reparations loan package, with 25 billion euro from immobilized Russian private bank accounts across the EU and 140 billion euro from Euroclear in Belgium.
00:45However, Deweyver has consistently refused to endorse the plan, calling it fundamentally wrong and declaring that restoration under current conditions is impossible.
00:57Deweyver's core objection.
01:00Belgium, as the jurisdiction where the assets are held, would face disproportionate legal and financial risk if Russia successfully sued to recover the funds in court.
01:09Belgium fears it could be held liable for the entire amount, potentially creating a 140 billion euro debt bomb for Belgian taxpayers and Euroclear, which manages the assets.
01:23Deweyver has demanded that all 27 EU member states provide explicit financial guarantees to absorb any Russian legal claims before Belgium agrees to the plan.
01:33Deweyver's resistance operates on three levels, legal, financial and geopolitical.
01:41Legally, Belgium fears that Russia could invoke its 1989 bilateral investment treaty with Belgium to mount successful litigation claims for restitution.
01:52The National Bank of Belgium's 2025 stress tests project a 2-3% GDP hit in a full-blown legal dispute with Russia, exacerbating inflation already at 2-8%.
02:05Additionally, Deweyver points to Belgium's existing business interests in Russia, Belarus and China and notes that Euroclear holds approximately $16 billion in Russian assets, creating additional leverage for Moscow's potential retaliation.
02:20Politically, Deweyver's coalition partners have largely backed him, with former PM Sophie Wilmer's stating,
02:27Prime Minister Deweyver is right to call for such caution.
02:32However, EU officials and some opposition figures have increasingly characterised Deweyver as the new Orban, suggesting his stance masks pro-Russian sympathies rather than legitimate legal concerns.
02:45Deweyver counters, by offering an alternative, joint EU debt borrowing instead of using Russian assets, arguing that,
02:54The big advantage of debt is that you know it. You know how much it is. You know how long you will bear it.
03:00The disadvantage of the Russian money is that you have no idea how far the litigation will go.
03:06The European Commission has intensified pressure on Belgium to reverse its position, with diplomatic cables leaked to Politico in October 2025, revealing threatened arm twisting.
03:19The Commission hinted it could withhold structural funds or fast-track infringement proceedings against Belgium for insufficient sanctions enforcement.
03:28German Chancellor Mertz has lobbied Deweyver repeatedly, arguing that the funds are essential for Ukraine's 2026-2027 defence and reconstruction needs.
03:39The EU is targeting an agreement at the European Council summit in December 2025 to finalise the plan.
03:48Deweyver's stance has created a critical funding gap for Ukraine at a moment when Western military and financial support is essential to sustain CAVE's defence.
03:57Ukraine faces a potential 38 billion euro budgetary shortfall in 2026-2027, with the frozen Russian assets representing a critical lifeline for both military equipment and civilian reconstruction.
04:13However, with Belgium blocking the use of these assets, the EU faces a binary choice.
04:18Negotiate a compromise that preserves Belgium's legal protections, or invoke qualified majority voting to override Belgium's veto, a move that would fracture EU unity and potentially trigger Belgian political instability.
04:34Deweyver's Flemish party, the NVA, could collapse the coalition if pressured too hard, forcing snap elections.
04:41As winter 2025 looms with Russian drones hammering Kyiv's power grid, the question remains, will the EU find a compromise that unlocks funding for Ukraine, or will Belgium's obstruction, whether rooted in legitimate legal caution or subtle pro-Russian sympathies, continue to undermine European strategic unity?
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