Belgium’s Prime Minister, Bart De Wever, has expressed strong opposition to a proposed European Union plan to use frozen Russian state assets as collateral for a €140 billion loan to Ukraine. In a letter to EU Commission President Ursula von der Leyen, De Wever warned that the scheme could jeopardize the prospects for a peace deal and expose Belgium to significant legal risks.
The plan, which would utilize frozen Russian assets held at Euroclear in Brussels as collateral for a “reparations loan,” has been met with skepticism by De Wever, who argues that it would remove a crucial bargaining tool from any potential settlement with Moscow. He emphasized that hastily moving forward with the scheme could prevent the EU from reaching a peace deal, and that Russia may later challenge the move, potentially leading to claims for repayment.
De Wever’s concerns are not only centered on the potential consequences for the peace process but also on the financial implications for Belgium. He noted that if Russia is not ultimately deemed the losing party, it may request the return of its sovereign assets, which could trigger turmoil in EU financial markets.
The controversy surrounding the frozen Russian assets has also sparked accusations from several EU states that Belgium has mishandled tax revenue from these assets. Diplomats have alleged that Belgium has not fully accounted for the windfall income collected from Euroclear, with some suspecting that the money has been folded into the country’s national budget rather than being channeled transparently to Ukraine.
Belgian officials have rejected these claims, stating that the income is being directed to Ukraine in full. However, the dispute highlights the ongoing challenges and complexities surrounding the use of frozen Russian assets to support Ukraine.
Russia has consistently denounced Western moves to freeze its funds as “theft” and has warned that plans to tap these funds to support Ukraine would damage the West’s credibility. President Vladimir Putin has stated that Moscow is preparing retaliatory measures if such plans proceed.
The EU’s plan to provide financial support to Ukraine remains a contentious issue, with significant implications for the ongoing conflict and the global economy. As the situation continues to unfold, it is likely that the debate over the use of frozen Russian assets will remain a focal point of discussion among EU leaders and international stakeholders.