Belgium Blocks Reparations Loan, EU Partially Pays Ukraine

The Council of the EU on Nov. 4 approved a partial disbursement from the Ukraine Facility after Kyiv completed nine of the conditions for the fifth tranche but left two reforms outstanding. The EU will pay about €1.351 billion from the fifth tranche and simultaneously transfer nearly €600 million from the fourth tranche — roughly €1.949 billion in total — while withholding the remainder until the delayed reforms are completed. Since the Facility began, Ukraine has also received earlier tranches and bridge financing to support macro-financial stability and public administration. Separately, Belgium’s refusal to back a proposed €140 billion “reparations” loan using frozen Russian state assets has alarmed EU officials, who warn the IMF may withhold a new roughly $8 billion program for Kyiv unless the EU provides stronger assurances of long‑term fiscal resilience. Diplomats say legal and financial concerns raised by Belgium have created urgent timing pressure ahead of a likely decisive IMF meeting in December and that failure to resolve the issue could undermine investor confidence and continued Western financing for Ukraine.