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EU weighs Plan B for Ukraine as Belgium raises bar on reparations loan

Published

3 months ago

November 29, 2025

EU weighs Plan B for Ukraine as Belgium raises bar on reparations loan

European Union leaders are coming to terms with the idea that an emergency funding solution to keep the Ukrainian economy afloat will have to be deployed after Belgium raised the bar higher to unlock a reparations loan that would bolster Kyiv’s finances.

The solution could see the EU raise money on the markets to deliver a non-repayable grant to Kyiv that would cover its most immediate financial and military needs in 2026.

This, in turn, would give leaders more time to break the deadlock over the proposed loan, a bold attempt to channel the immobilised assets of the Russian Central Bank to Ukraine.

The bulk of the assets, around €185 billion, is kept at Euroclear, a central securities depository in Brussels. This makes Belgium the cardinal vote in the debate.

Initially, EU leaders were expected to be able to assuage the Belgian reservations and sign up to the unprecedented project during their next meeting on 18 December.

In a new twist in the long-running saga, Belgian Prime Minister Bart De Wever penned a scathing letter to Ursula von der Leyen, blasting the reparations loan as “fundamentally wrong” and ridden with legal and financial pitfalls.

“Why would we thus venture into uncharted legal and financial waters with all possible consequences, if this can be avoided?” De Wever tells the president of the European Commission in the letter. “I will never commit Belgium to sustain on its own the risks and exposures that would arise from the option of a reparations loan.”

Upping the ante, De Wever demands “legally binding, unconditional, irrevocable, on-demand, joint and several guarantees” to cover the €185 billion of the assets and all the potential fallout, such as arbitration costs, interests, investment opportunity loss and even the “quantification of financial impact to the Central Bank of Russia’s credit”.

He also asks for total coverage for Euroclear’s holdings in “Russia-friendly jurisdictions”, which he said could be subject to retaliatory measures from the Kremlin.

“Some may hold the belief that this is only a theoretical exposure. l am making the point that this danger is, to the contrary, real and likely to happen,” De Wever writes.

By raising the bar so high for the guarantees, which are a crucial element to unlock the reparations loans, De Wever makes its approval exponentially more difficult.

It is unlikely that the other leaders will be able to show up at the summit in December with multi-billion guarantees that rely for the most part on a hypothetical calculus. For some countries, such a complex structure would require the blessing of their parliament.

The hurdles are weighing heavily in the minds of EU officials and diplomats as they rush to break the deadlock before Ukraine runs out of foreign aid. The country expects a fresh injection of assistance in the second quarter of 2026 at the latest.

Adding to the pressure is an $8.1 billion programme that the International Monetary Fund (IMF) is meant to grant Ukraine. For the IMF to make a final decision, it will need firm commitments by European allies to ensure Kyiv’s macro-economic stability.

The mounting urgency has drastically raised the odds for a bridge solution to plug the gap. The interim financing could be backed by either national guarantees or the EU budget, which currently forbids borrowing for a country outside the bloc.

Tweaking the budget’s rules would need unanimity, a tall order given Hungary’s adamant opposition to aiding Kyiv in any capacity. The same obstacle would remain if leaders chose joint debt as the long-term arrangement to support Ukraine.

The Trump factor

In his letter, De Wever goes beyond law and economics and dives headfirst into politics.

The Belgian leader warns that pushing the reparations loan at this particular stage could imperil the White House’s efforts to secure a peace deal to end Russia’s war.

“Hastily moving forward on the proposed reparations loan scheme would have, as collateral damage, that we, as the EU, are effectively preventing reaching an eventual peace deal,” De Wever tells von der Leyen.

“We can hardly engage the Russian sovereign assets for multiple purposes at the same time. Either they are immobilised for the purpose of financing reconstruction of Ukraine, or they are spent now on financing war efforts or Ukraine’s core budget.”

De Wever argues that it is “very probable” that Russia will not be declared the “losing party” in the conflict and therefore be entitled to recover its sovereign property currently under sanctions. If this happens, he adds, the reparations loan will fall apart and European taxpayers will have to foot the bill themselves.

This section in the letter stands in stark contrast with the position advocated by other leaders, who see the Russian assets as the bloc’s most powerful leverage.

“We must quickly reach an appropriate agreement by the EU leaders’ summit in December at the latest to strengthen our negotiating position and send another signal of solidarity and support to Ukraine,” German Chancellor Friedrich Merz said on Thursday.

Von der Leyen has also framed her proposal under a moral lens to “make Russia pay”.

“To be very clear – I cannot see any scenario in which the European taxpayers alone will pay the bill. This is also not acceptable,” she said this week.

The internal disagreements come at a precarious time for Europeans, who were caught off guard by a 28-point peace plan secretly drafted by US and Russian officials and are now scrambling to close ranks and project political unity.

The original draft pitched a highly controversial model that would use the Russian assets for Washington’s and Moscow’s commercial benefit. The provision is believed to have been removed after high-level talks in Geneva between the US and Ukraine.

Still, the text highlighted the value of the Russian assets. For some, it confirmed the need to approve the reparations loans. For others, it prompted second thoughts.

Hours before De Wever sent his letter to von der Leyen, Russian President Vladimir Putin warned that touching the funds would amount to the “theft of someone else’s property”.

(Under the proposal, Moscow would be allowed to recover the immobilised assets if it agreed to compensate Ukraine for the damages caused by the war.)

“The government of the Russian Federation, by my assignment, develops a package of reciprocal measures in case this happens,” Putin said during a briefing.

In awkward timing for Kyiv, the debate on the reparations loan coincides with a spiralling corruption scandal that precipitated the resignation of Andriy Yermak, President Volodymyr Zelensky’s powerful chief of staff and main negotiator in the peace process.

A diplomat told Euronews that President Zelensky will “have to straighten out the situation as it looks really bad”, and the optics make it significantly more challenging for Europe to sign off on another round of funding.

Still, diplomats insist that aid for Ukraine, a country on the front line of Russian aggression, should not be linked to the scandal.

For its part, the European Commission, which has been criticised for not taking De Wever’s initial concerns seriously, is putting on a brave face.

“These are uncharted waters, so it’s legitimate to ask questions, to share concerns,” said Paula Pinho, the Commission’s chief spokesperson. “We are really doing our utmost to address those concerns in a satisfactory manner so that everybody can feel confident and comfortable with any solution that is put forward eventually.”

Asked if the Commission was ready to override Belgium and push the reparations loan with a qualified majority, Pinho said: “We’re not there yet.”

Related Topics:Bart De Wever Featured Reparations Loan Russia Ukraine Ursula von der Leyen

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Trump's national security team comes to convince Congress to back Iran war

Published

7 hours ago

March 4, 2026

Press Room

Trump's national security team comes to convince Congress to back Iran war

President Donald Trump’s top national security advisers were to spend much of the day on Tuesday making the case to members of Congress for the U.S.-Israel war on Iran, as Democrats and some of his fellow Republicans clamored for more information.

World

Iran’s senior clerics ‘exposed’ after building strike in Qom, succession choice looms

Published

8 hours ago

March 3, 2026

Press Room

Iran’s senior clerics ‘exposed’ after building strike in Qom, succession choice looms

NEWYou can now listen to Fox News articles!

Senior Iranian clerics would have been left “exposed” after an Israeli airstrike hit a meeting place where they were supposed to be convening Tuesday — days after a strike leveled the Tehran compound of Supreme Leader Ayatollah Ali Khamenei, a defense analyst has claimed.

The clerics, members of the Assembly of Experts, had reportedly planned to meet at the location in Qom to deliberate succession plans for Khamenei, who was killed in the strikes, according to The Times of Israel.

“This second strike would be another embarrassment to what has been left of the regime,” Kobi Michael, a senior researcher at the Institute for National Security Studies and the Misgav Institute, told Fox News Digital.

“It indicates intelligence dominance and superiority because any movement is detected, meaning they would feel exposed,” Michael added.

Iranian Supreme Leader Ayatollah Ali Khamenei was killed in an Israeli airstrike Saturday. (Getty Images)

“As of now, the leadership would feel insecure and hunted, with all of their plans collapsing one after another.”

“They would feel totally isolated and understand that the biggest risk might come from home — from a potential uprising next,” he added.

Israel Defense Forces spokesman Brig. Gen. Effie Defrin confirmed that the Israeli Air Force struck the building where senior clerics had planned to assemble, The Times of Israel reported.

KHAMENEI’S DEATH OPENS UNCERTAIN CHAPTER FOR IRAN’S ENTRENCHED THEOCRACY

A general view of Tehran with smoke visible in the distance after explosions were reported in the city, Monday, in Iran. (Contributor/Getty Images)

It remains unclear how many of the 88 members were present at the time of the strike, according to an Israeli defense source cited by the outlet. The second strike on Iran’s leadership comes amid a broader military campaign.

As previously reported by Fox News Digital, U.S. forces have struck more than 1,700 targets across Iran in the first 72 hours of Operation Epic Fury, according to a U.S. Central Command fact sheet.

The campaign is aimed at dismantling Iran’s security apparatus and neutralizing what officials describe as imminent threats.

According to U.S. Central Command, targets have included command-and-control centers, the Islamic Revolutionary Guard Corps Joint Headquarters, the IRGC Aerospace Forces headquarters, integrated air defense systems and ballistic missile sites.

FIREBRAND ANTI-AMERICAN CLERIC ALIREZA ARAFI SEEN AS CONTENDER TO REPLACE IRAN’S KHAMENEI

The USS Thomas Hudner fires a Tomahawk land attack missile in support of Operation Epic Fury, Sunday, while at sea. (U.S. Navy/via Getty Images)

“We need strategic patience and determination, and in several weeks most of the job will be accomplished,” Michael added. “Even if the regime does not collapse, Iran will not be like we used to know.

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

“I assume that the U.S. and Israel will establish a very robust monitoring mechanism that will enable them to react whenever the regime tries to reconstitute its military capacities again.”

Emma Bussey is a breaking news writer for Fox News Digital. Before joining Fox, she worked at The Telegraph with the U.S. overnight team, across desks including foreign, politics, news, sport and culture.

World

Hungarian veto proves EU needs less unanimity, says new Dutch PM

Published

10 hours ago

March 3, 2026

Press Room

Hungarian veto proves EU needs less unanimity, says new Dutch PM

Hungary’s last-minute veto on the €90 billion loan to Ukraine highlights the need for the European Union to move away from unanimity, Rob Jetten, the new prime minister of the Netherlands, said on his first trip to Brussels since taking office.

“The new Dutch goverment is in favour of less and less decision-making by unanimity on the European level,” Jetten told a group of media, including Euronews, on Tuesday.

“This is a clear example of why that is important because we cannot explain to our constituents that Europe is sometimes way too level in reacting to great issues that affect us all,” he added.

Jetten called on his Hungarian counterpart, Viktor Orbán, to abide by the delicate deal that the 27 EU leaders reached in December after fraught negotiations. The compromise saw Hungary, Slovakia and the Czech Republic promising the necessary unanimity to amend the EU budget rules in exchange for being exempted from the joint borrowing.

Officials and diplomats in Brussels believe that by vetoing a critical piece of the loan at the last stage of the legislative process, Orbán has breached the principle of sincere cooperation that binds the bloc’s decision-making.

“If you reach political agreement on the Council level, we expect every member state to uphold that agreement. And if not, it’s a big task for the European Commission take action,” Jetten said.

In the new coalition programme, the Netherlands calls for the “simplification” of the Article 7 procedure that can deprive member states of voting rights when they commit grave violations of the rule of law. Hungary has been under Article 7 for years, but there has never been sufficient political momentum to move to the harder enforcement phase.

“It is absolutely necessary that we support Ukraine in the months to come to make sure they can continue their fight against Russian aggression,” Jetten went on.

“With less and less American support for the Ukrainians in terms of money and weapons, it is up to the Europeans to deliver.”

Orbán’s veto centres on the interruption of Russian oil supplies through the Druzhba pipeline, which Kyiv says was attacked by Russian drones on 27 January and has remained non-operational since then.

But Orbán says Ukrainian President Volodymyr Zelenskyy has deliberately shut down the pipeline for “political reasons” to influence the results of the upcoming Hungarian elections. Orbán trails in opinion polls by double digits.

Caught between the two rival camps, the European Commission has asked Zelenskyy to repair Druzhba and Orbán to lift his veto. Meanwhile, Hungary and Slovakia have proposed a fact-finding mission to inspect the damaged section of the pipeline.

“We expect the European Commission to solve this issue,” Jetten said. “If it’s helpful to have any fact-finding missions on the pipeline to fix this issue, I’m open to it. But everything begins with: a political agreement at the Council level is a political agreement.”

‘Too early’ for a date on Ukraine’s accession

Among the first debates facing Jetten as premier is the future of enlargement, a topic on which the Netherlands has expressed well-known reservations in the past.

Zelenskyy is advocating for a specific date for Ukraine’s accession to be enshrined in a prospective peace deal, something that could offset the pain of territorial concessions. Last week, he openly suggested 2027 as an aspirational benchmark.

The Commission says it cannot commit to a clear-cut date but is working on legal avenues to revamp the notoriously complex process and ensure the Ukrainian people have greater certainty in their path to membership.

Asked about the potential reform, Jetten said enlargement should be reconsidered from a “geopolitical perspective” but urged the bloc to be “careful” with next steps, warning that the essence of the European project risks being undermined.

“We are very open-minded to look into broader support for these (candidate) countries, but moving too fast is not the way to move forward,” the premier said.

“I think, at the moment, it’s not possible to set a date for enlargement with Ukraine, but it is possible to talk with them, and I will do that with President Zelenskyy, (about) how Europeans can support Ukraine in the important reforms that they have undertaken. But at this moment, it is too early to set the date.”

Jetten also touched upon the US-Iranian strikes on Iran, which have pushed the Middle East into uncharted territory. Wholesale gas prices have soared in reaction to the war, prompting fears that Europe might soon face a prohibitive bill to refill its underground reserves, which are running low after the heating season.

“Obviously, the Iran war can have a big impact on strategic reserves, not only in Europe but also in Asia. So we have to prepare ourselves for any case that this war will continue for many more weeks and impact the strategic reserves in the Netherlands and abroad,” he said, noting extra measures would be taken “if necessary”.

“I think the broader concern is what this war and everything that’s going on in the Strait of Hormuz is going to affect in terms of pricing.”

‘The Netherlands is back’

Jetten’s D66 party has formed a minority goverment with the liberal VVD and the conservative CDA, all of which support European integration. His tenure puts an end to the fractious four-party coalition headed by the right-wing, Eurosceptic Party for Freedom (VVD) of Geert Wilders, which was marked by constant disagreements.

Among the priorities, his executive has pledged to ramp up defence spending, simplify regulation, promote new technologies and expand renewable energy.

“As a founding (member) and the fifth (largest) economy within the EU, the Netherlands is back at the table to work closely together with everyone here in Brussels and our allies within the EU,” Jetten said.

“We see a lot of opportunities to strengthen the European economy and competitiveness, and also to make sure that we do our job with a lot of tax-based money to invest in the European defence and the European defence industry.”

Jetten and the other 26 leaders are heading for a no-holds-barred fight on the next Multiannual Financial Framework (MFF), the bloc’s seven-year budget. Brussels has proposed a €2-trillion template that some capitals consider politically unpalatable.

Where to cut spending will be a major fracture line. Germany, the Nordics and the Baltics want a greater focus on strategic priorities, while Spain, Italy and Eastern Europe want to preserve the prominence of agriculture and cohesion funds.

The Dutch premier made it clear that the next budget should focus on the big transitions shaping the continent’s future: defence, technology and climate.

“A modern MFF doesn’t mean an exploded MFF in terms of numbers,” he said.

“The Netherlands will look into the numbers very closely, and we will have a lot of debate on this topic in the months to come.”