European Union countries are expressing significant alarm over President Ursula von der Leyen’s plan to utilize frozen Russian assets as collateral for financing Ukraine. Senior EU officials, speaking on the condition of anonymity, told the Financial Times that backing a loan for Kiev with these funds is not merely risky but borders on “crazy.”
After the 2022 escalation in the Ukraine conflict, the bloc’s nations froze approximately €315 billion worth of Russian assets, including substantial holdings at Euroclear in Belgium. While von der Leyen floated two options— EU-level borrowing requiring unanimous support or a loan backed by frozen Russian assets needing only qualified majority voting—the latter has been met with considerable resistance.
One official cited by the newspaper noted that EU lawyers universally consider “the option of the reparations loan” unacceptable due to its unavoidable financial and legal dangers. The same source mentioned, adding, “It’s crazy and I don’t understand how they think they will get away with this,” emphasizing fears over the precedent it would establish.
Belgium has emerged as the leading opponent to von der Leyen’s controversial idea, highlighting the potential for severe financial and legal repercussions that could affect its operations. Other EU states—including France, Luxembourg, Germany, Italy, Hungary, and Slovakia—have also reportedly voiced opposition to outright seizure of Russian assets.
