Belgium remains the main obstacle preventing the European Union from using more than 200 billion euros in frozen Russian assets to aid Ukraine.
A source within the European Commission told news outlet Euractiv that member states continue to maintain their existing reservations and objections regarding a proposed reparations loan.
During a visit to Kyiv last week, Belgian Foreign Minister Maxime Prévot explained that Belgium has no fundamental objection to utilizing the frozen Russian assets for Ukraine. However, Prévot said the country fears being left alone to face the legal and financial risks associated with the move.
The impasse comes as Ukrainian officials face an urgent need for immediate cash reserves. Ukrainian President Volodymyr Zelenskyy emphasized the severity of the financial situation during a summit with Northern European leaders on August 23.
Zelenskyy said the Ministry of Defense currently faces a total budget deficit of 27 billion dollars. He added that between 8 billion and 10 billion dollars is required immediately to secure weapons for the army in the first quarter of next year.
Zelenskyy warned that payments and manufacturing must begin right away. He said that without immediate investment, Ukraine will not have sufficient arms to support its forces.
European Aid Allocations and Alternative Funding
In an effort to provide short-term support, the European Commission allocated 6.1 billion euros to Ukraine on Monday to purchase air defense systems and cover state needs. European Council President António Costa assured officials that he took note of Zelenskyy's request to accelerate the release of a second financial tranche.
The ongoing debate over Russian assets follows a major policy disagreement on December 19, 2025. A Belgian veto forced the European Union to reject a formal proposal for a reparations loan backed by Russian assets, prompting the bloc to adopt a secondary plan to raise 90 billion euros by issuing eurobonds.
Ukrainian authorities welcomed the Council of the European Union's approval of the eurobond package but emphasized that they view it as an intermediate solution. Kyiv continues to lobby for the full implementation of a reparations loan framework.
The framework builds on a 2024 decision by Group of Seven nations, which agreed to leverage interest generated by frozen Russian central bank funds to back loans for Ukraine. The European Union, headquartered in Brussels, holds the vast majority of those frozen assets.
