Italy gives Ukraine a reality check, four EU nations torpedo €210Bn loan, blink over Russian funds

The European Union is facing divisions over how to use frozen Russian assets to support Ukraine, as several member states call for alternatives to a proposed reparations loan. Belgium, joined by Italy, Bulgaria and Malta, has warned against rushing into using Russian funds, citing legal, financial and institutional risks. While EU members agreed to indefinitely freeze Russian central bank reserves worth about $245 billion, disagreements persist on next steps. The debate comes as Russia filed a lawsuit against Euroclear and as warnings grow that Ukraine could face a funding shortfall next spring without new financial support.