Von der Leyen Pushes Belgium to Approve Plan to Use Frozen Russian Assets for Ukraine

European Commission President Ursula von der Leyen has reaffirmed that the most efficient way to fund Ukraine is by using the profits from frozen Russian assets to back a new loan. Speaking before the European Parliament, she also discussed alternative mechanisms after facing opposition from Belgium.

The European Union is urgently seeking financial solutions to help Kyiv cover its growing budget deficit as Russia’s invasion continues into its fourth year. The Commission’s proposal envisions leveraging Russian central bank assets frozen in Belgium to create a 140 billion euro “reparations loan” for Ukraine.

However, the plan has encountered strong resistance from the Belgian government, which has voiced concerns about potential legal retaliation from Moscow, according to AFP. Von der Leyen said Brussels is in close contact with Belgian authorities and other EU member states to find a compromise.

Despite the hesitations, the Commission president insisted that the idea of using frozen assets remains the most effective and morally justified approach. The EU would grant Ukraine a loan that would be repaid once Russia provides reparations, she explained. “This is the most effective way to support Ukraine’s defense and economy,” von der Leyen stressed, adding that it would also send a clear signal to Moscow that “time is not on its side.”

Should the asset-based plan fail to gain unanimous approval, von der Leyen outlined two fallback options. One would involve using flexibility within the EU’s central budget to borrow funds from capital markets, while the other would rely on a joint funding agreement between member states.

According to EU diplomats and officials, both of these alternatives would likely come with higher costs for national governments, many of which are already facing fiscal constraints. Sources in Brussels noted that by outlining multiple scenarios, von der Leyen aimed to increase pressure on Belgium to back the original proposal.

EU leaders hope to finalize a common funding framework for Ukraine at their upcoming summit in December, where the debate over the use of frozen Russian assets is expected to take center stage.