(MENAFN) Belgium has signaled it will not support the European Union’s proposal to use frozen Russian sovereign assets as collateral for a €140 billion ($160 billion) loan to Ukraine unless the financial risks are shared among all member states, Prime Minister Bart De Wever said.

The European Commission envisions the funds as a form of reparations, to be repaid if Moscow covers damages from the conflict. Russia has condemned the initiative as theft. Belgium holds the largest share of these assets via the Euroclear clearinghouse in Brussels.

Speaking ahead of an EU leaders’ summit, De Wever emphasized that his government will “do everything in my power” to block the plan without guarantees of collective risk-sharing. He noted that using sovereign assets in this way is unprecedented, “not even during World War II,” and warned that unilateral action would be pointless.

“We know there are vast amounts of Russian money in other countries that remain silent on this. If we move, we must move all together. That’s European solidarity,” he added.

Italy’s Prime Minister Giorgia Meloni has also cautioned against actions that could threaten “the financial and monetary stability of our economies and the euro area.” Russian President Vladimir Putin previously remarked that “smarter” European governments recognize the global financial risks posed by the proposed loan.

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