Belgium has rejected a fresh European Union (EU) proposal to use frozen Russian central bank assets as collateral for a large-scale loan to Ukraine, dealing a major setback to Brussels’ efforts to exploit Moscow's funds for securing long-term financial support for Kiev.

The rebuke came just hours before the European Commission was expected to unveil a legislative text authorizing the use of up to €210 billion in immobilized Russian assets to underwrite new loans for Ukraine.

Belgian Foreign Minister Maxime Prevot said on Wednesday that the proposal “does not address our concerns in a satisfactory manner,” stressing that the risks Belgium would assume as the host country for the bulk of the frozen funds were being ignored.

Belgium fears being left ‘alone’ with legal fallout

Roughly €190–200 billion of the Russian assets in question are held at Euroclear, the Brussels-based financial clearinghouse, placing Belgium at the center of any potential legal retaliation from Moscow.

Belgium warns that using the assets to back loans, rather than merely taxing their profits, exposes the country to lawsuits that could force its government or institutions to compensate Russia should future courts rule against the EU.

“It is not acceptable to use the money and leave us alone facing the risk,” Prevot said, adding that Belgium has had “the frustrating feeling of not having been heard.”

Officials in Brussels have argued for weeks that the European Commission and member states have not provided adequate guarantees to shield Belgium from legal liability, reputational damage, or financial exposure. Prevot said that while Belgium remains open to discussion, its core concerns are “being downplayed.”

Read more: EU drafts legal text to use frozen Russian assets for loans to Ukraine

EU timeline thrown into doubt

EU leaders had hoped Wednesday’s legal proposal would pave the way for an agreement when heads of state meet on December 18. Belgium’s firm opposition now threatens to derail that timeline, complicating efforts to address Ukraine’s looming financing shortfall in early 2026.

With the war approaching its fourth year, many EU governments view the frozen Russian assets as the most viable means of delivering the billions Ukraine needs without turning to unpopular domestic spending or new joint debt. But legal uncertainty surrounding asset seizure and the unprecedented nature of the proposal to exploit a sovereign nation's finances continue to divide the bloc.

Alternative funding options emerge

The Commission has floated additional options, including direct grants from member states or collectively issued EU debt. Neither proposal has gained broad support, but Belgium endorsed borrowing on financial markets as the safest and most predictable method.

“It is a well-known, robust, and well-established option with predictable parameters,” Prevot noted.

German Foreign Minister Johann Wadephul, speaking shortly after Prevot, said he believed the frozen-assets plan could still be salvaged despite Belgium’s reservations.

“The issues can be solved,” he said, acknowledging that Brussels must take Belgian concerns seriously.

A critical moment for Kiev and for EU unity

Belgium’s stance underscores both the scale of Europe’s unresolved legal questions and the fragility of EU consensus on long-term Ukraine financing. As Kiev faces an approaching fiscal crisis, and Washington sends mixed signals on future aid, the EU’s internal divisions risk undermining its ability to act quickly.

With no agreement in sight, the dispute now forces the bloc to reconsider its core assumptions about using Russian assets, exposing a deeper debate over legality, risk-sharing, and political responsibility within the Union.

Read more: Belgium raises legal hurdles to EU’s use of frozen Russian assets