Japan rebuffs EU plea to join Russian assets plan

The European Commission wants EU capitals to strike a deal on using up to €210 billion in sanctioned cash before a leaders’ summit on Dec. 18. Belgium, however, is resisting over fears it will be on the hook to repay the full amount if Russia claws back the money.

One of its demands is that other G7 countries beyond the EU issue a loan to Ukraine using the Russian frozen assets that they hold domestically.

Belgian Prime Minister Bart De Wever has insisted that greater participation by G7 allies will reduce the risk of Russia retaliating solely against Belgium.

However, the U.S. and Japan have refused to join Brussels’ scheme — leaving the EU to bear the brunt of Ukraine’s future financing needs alone.

During the meeting, the U.S. said it will cut support to Ukraine after disbursing the last installments of a G7-wide loan that was negotiated by the Biden administration in 2024, an EU diplomat said.

The war-battered country faces a budget shortfall of €71.7 billion next year and will have to start cutting public spending from April unless fresh money arrives.