Politico reported the information.The outlet notes that Belgium is still blocking the European Commission’s initiative since most frozen Russian assets are held by the Brussels-based financial company Euroclear. Prime Minister Bart De Wever fears that if the plan goes ahead, Moscow could file lawsuits, making Belgium financially liable for billions in compensation.At the October EU summit, De Wever demanded guarantees from Brussels that Belgium would not face legal and financial risks. Nevertheless, the European Commission continues to insist that using profits from frozen Russian assets is the most realistic way to ensure stable funding for Ukraine.As Politico notes, on November 4, deputy finance ministers of EU countries failed to make progress in negotiations on the “reparations loan” mechanism. European Commissioner for the Economy Valdis Dombrovskis warned that the delay could complicate the adoption of any decisions:“The longer we now run delays, the more challenging it will become. It may open questions on some possible bridging solutions,” Economy Commissioner Valdis Dombrovskis told reporters in the Bulgarian capital of Sofia on Tuesday.Brussels warns that if no agreement is reached by spring, Kyiv could face a budget deficit as early as 2026. In that case, supporting Ukraine would have to come from the national budgets of EU countries.The European Commission is preparing a memorandum for Belgium outlining alternative funding scenarios, including EU-backed loans. However, Politico sources report that Brussels hopes to persuade Belgium to support a compromise, as there are currently no real alternatives for aiding Ukraine.On October 9, Belgium outlined its “red lines” regarding the use of frozen Russian assets to finance a €140 billion reparations loan for Ukraine, demanding that EU countries provide guarantees for shared risk coverage.