Walking a Tightrope

The EU’s proposed Reparations Loan – using immobilised Russian state assets to finance support for Ukraine – sits on precarious legal and political ground. While the Commission argues the scheme is temporary, reversible, and defensible under international and EU law, critics warn that it risks disguised confiscation, countermeasures, investment claims, and long-term damage to Europe’s financial stability. Belgium’s strong objections highlight the deep uncertainties surrounding a mechanism that touches vital national and Union interests ahead of a decisive European Council meeting.