Belgium has blocked the approval of a 140-billion-euro “reparations loan” to Ukraine, which was to be financed through profits generated from frozen Russian assets. The move, confirmed during the Brussels summit, has delayed plans for the European Union to provide large-scale financial assistance to Kyiv at the beginning of 2026. EU leaders have now postponed the decision until their next meeting in December, dealing a blow to Ukraine’s expectations of securing early funds.

According to the Financial Times, leaders of 26 EU member states, with Hungary abstaining, tasked the European Commission with presenting new options for financial support “based on an assessment of Ukraine’s needs.” However, they stopped short of backing the proposed loan that would rely on income from immobilised Russian assets worth around 190 billion euros.

The Belgian government opposed the plan, expressing concern about becoming the main target of potential Russian lawsuits and retaliatory measures, since most of the frozen assets are held at the Euroclear depository in Brussels. Prime Minister Bart De Wever stressed that Belgium needs absolute legal clarity and shared responsibility from other EU members before proceeding. “A legal basis is not a luxury,” he said, warning that the country would not risk undermining financial stability or the euro without firm guarantees.

European Council President António Costa confirmed that the leaders had made a key political decision to ensure Ukraine’s financial support for 2026 and 2027, but acknowledged that “technical issues” still need resolution. French President Emmanuel Macron said that the loan remains “the central set of options” for supporting Ukraine despite the temporary pause, while German Chancellor Friedrich Merz noted that Belgium’s reservations raise “serious questions” that must be addressed.

Ukrainian President Volodymyr Zelensky, who attended the summit, underlined the urgency of the funds, saying Ukraine needed the money “at the very beginning of 2026.” He urged the EU not to lose momentum in its efforts to sustain Ukraine’s defence and economy amid ongoing Russian aggression.

The concept of the “reparations loan” does not involve seizing Russian assets outright, which remains legally complex. Instead, it would use them as collateral, with future profits from those assets, primarily interest earnings, repaying the loan. This would allow Kyiv to access substantial funds now, while formal reparations or asset confiscation debates continue.

At the post-summit press conference, President Costa reiterated that the EU’s long-term support for Kyiv remains unchanged. “We will support Ukraine as much as necessary for as long as it takes,” he said, stressing that Russia should “take good note” of Europe’s determination to ensure Ukraine’s financial and military resilience.

Costa added that the European Commission has been instructed to present concrete proposals for Ukraine’s funding, with final approval expected at the December European Council meeting. He also confirmed that the EU adopted its 19th package of sanctions against Russia, aimed at tightening pressure on its military machine and disrupting the operations of its “shadow fleet” used to bypass oil restrictions.

The summit also placed a strong emphasis on strengthening Europe’s defence capabilities. Costa said that the framework for a comprehensive European defence strategy had been completed, highlighting priorities such as countering drones, improving air defence, and reinforcing the EU’s eastern flank. The first coalitions are to be formed by the end of 2025, with specific projects expected to launch in early 2026.

“Europe’s defence is not only about spending more,” Costa said. “It is about spending smarter, acting together, and delivering results. That is how we strengthen Europe’s sovereignty.”