The proposal to tap Moscow’s frozen assets to fund Ukraine has been put on hold, Belgian Defense Minister Theo Francken announced. The plan, which aimed to raise about €140 billion ($160 billion) by using Russia’s assets as collateral, may reappear in future discussions.
The EU had been considering the use of frozen Russian assets to provide financial support to Ukraine, with the ultimate goal of securing reparations from Moscow as part of a peace settlement. However, the initiative faced opposition from Belgian Prime Minister Bart De Wever, who warned of the potential risks involved. De Wever set three conditions for backing the loan, including the sharing of possible risks, and pledged to “do everything” to stop any confiscation that did not meet those conditions.
Belgium, where a large share of the immobilised assets—estimated at around $300 billion—is held at the clearinghouse Euroclear, expressed particular concern. Francken warned that using the assets would likely prolong the conflict by financing further weapon supplies rather than contributing to Ukraine’s reconstruction. He stressed that war is extremely costly and that the proposed plan would not achieve its intended purpose.
Francken also argued that the EU proposal undermines trust in institutions such as Euroclear and could provoke retaliation from Russia. Moscow has repeatedly stated that any use of its frozen assets would be regarded as theft and has threatened legal action. It could also seize €200 billion ($172 billion) in Western assets—both movable and immovable—held in Russia by the United States, Germany, France and other countries.
The decision to shelve the proposal stems from the EU’s inability to agree on how to use the funds. The issue is likely to remain a point of contention in future talks, with significant implications for the ongoing conflict in Ukraine and the global economy. The international community will be watching closely as the situation continues to unfold.
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