Belgium earlier refused to back the EU’s “reparations” plan meant to tap frozen funds for Ukraine’s recovery, citing legal risks
The EU could have to provide Russian sovereign funds frozen in Belgium as collateral to the IMF in order to secure continued funding for Ukraine, Politico reported on Monday citing sources in Brussels.
Ukraine, which relies heavily on Western aid in its conflict with Russia, has been struggling to secure a new IMF funding package as its $15.5 billion program expires in 2027. Kiev requested an additional $8 billion last month, but talks have reportedly stalled over doubts about its economic viability.
The EU, Ukraine’s main sponsor, last month failed to approve a €140 billion ($160 billion) “reparations loan” backed by frozen Russian assets after Belgian Prime Minister Bart De Wever opposed it, calling it “sort-of-confiscation” and warning it exposes Belgium to major legal and financial risks without shared liability from other EU states.
Sources told Politico that the IMF may not grant further funding to Ukraine, vital for its war effort amid a deep budget shortfall, unless the EU approves the new loan.
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