The Financial Times reported on October 2, 2025, that European Union leaders failed to advance a proposed €140 billion loan for Ukraine after a summit revealed sharp disagreements over the plan. The proposal stalled after Belgium, backed by France and Luxembourg, raised concerns about the legal and financial risks involved in using frozen Russian assets to fund the aid package.
- The plan would provide Ukraine with a "reparations loan" backed by Russian sovereign assets, most of which are held at the Euroclear institution in Belgium. Under the terms, Ukraine would only repay the funds after Moscow pays war reparations.
- Belgium vetoed the measure, demanding that financial risks be shared among all member states and that it receive greater legal protection from potential Russian lawsuits.
- France and Luxembourg also expressed hesitation, citing the legal precedent of using frozen sovereign assets and the potential financial consequences.
Despite support from Germany and other member states, the European Commission will now conduct further technical work on the proposal before leaders revisit it at a summit in early November.
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