BRUSSELS, November 26. /TASS/. European countries are urgently developing a new plan to avert Ukraine’s financial collapse early next year if they fail to agree on seizing frozen Russian assets to fund Kiev, news outlet Politico reported, citing sources.

EU leaders at the October summit had hoped to agree on a proposal to use Moscow’s frozen assets to provide Ukraine with a "reparations loan" of 140 billion euros, the news outlet noted. However, the idea faced "fierce resistance" from Bart De Wever, the Prime Minister of Belgium, where these funds are held. The Belgian minister is concerned about the significant risks linked to expropriating Russian assets.

In light of this, experts in Brussels are now urgently drawing up new initiatives to assist Ukraine if the "reparations loan" proposal is not ready by the EU leaders’ summit on December 18. One option gaining support is providing Ukraine with an "interim loan" backed through community borrowing. These funds would help Ukraine "stay afloat in the early months of 2026," four EU officials said.

This would, in their words, buy more time "to prepare a full 'reparations loan' using Russian assets in a way that Belgium 'can handle.'" According to two European diplomats, Ukraine might be asked to repay the initial "interim loan" to the EU after receiving funds from the long-term "reparations loan."

The preparation of such a plan could be finalized in the coming days, the news outlet noted. However, in the long term, EU officials believe there is no substitute for the "reparations loan."

About Russian assets

Belgium, where Russian assets worth 200 billion euros are frozen at Euroclear, blocked the European Commission’s proposal to expropriate them under the guise of a so-called reparations loan to Kiev at the October 23 EU summit. The Belgian government is demanding legally binding guarantees from all EU countries that they will fully share the financial and legal burdens Brussels would face as a result of Russia’s retaliatory actions.

Russian Ambassador to Belgium Denis Gonchar told TASS, regardless of the scheme used to expropriate the assets, it would amount to theft. He warned that Russia’s response "would follow immediately" and force the West "to count the losses."