The European Union plans to provide a “compensation loan” secured by frozen Russian assets.

Commission President Ursula von der Leyen said the proposal to EU member states took into account Belgium’s concerns that the plan could pose legal and financial risks if Russia files a lawsuit. The proposal also applies to other EU financial institutions holding Russia’s frozen assets.

An alternative option – a loan guaranteed by the EU budget – needs approval from all 27 member states. But this is unlikely, as Hungary has repeatedly opposed EU support for Ukraine.