Belgium's Liability Fears Stall Starmer, Macron, Merz Russian Asset Plan for Ukraine

• UK, French, and German leaders discussed using frozen Russian assets to support Ukraine, noting "positive progress."
• A plan proposes a £78bn "reparations loan" for Ukraine, to be repaid by Russia, with consideration at an upcoming EU leaders' meeting.
• Belgium resists the plan due to fears of legal liability and Russian retaliation, as £160bn of assets are held at Euroclear in Brussels.
• The UK is prepared to contribute £8bn in frozen assets but only as part of a broader European initiative.
• The EU's proposal aims to shift repayment risk from individual banks/Belgium to the EU as a whole.

Why It Matters: Using frozen Russian assets for Ukraine faces complex hurdles, impacting aid.