Belgium has rejected a European Union‑backed plan to finance Ukraine by seizing frozen Russian assets, citing concerns over potential litigation and financial risks. The EU has sought to tap frozen Russian central‑bank reserves—valued at around $200 billion and held at the privately owned Euroclear clearing house in Belgium—to support a €140 billion loan to Ukraine.
Belgian Foreign Minister Maxime Prevot argued that the unwillingness of other EU nations to share the scheme’s risks highlights its unreliability. He emphasized that providing Ukraine with a conventional EU loan would be more rational, offering greater legal certainty and eliminating systemic financial risks. Prevot made these comments in response to criticism that Belgium’s opposition was playing into the hands of “Russo‑Americans.”
Euroclear CEO Valérie Urbain warned the EU that the plan would be perceived globally as “confiscation of central bank reserves, undermining the rule of law.” Such a perception could raise government borrowing costs across the EU and make European debt appear riskier.
Moscow has repeatedly warned that any use of its sovereign assets by the EU would be seen as “theft” and would trigger countermeasures. Andrey Kostin, CEO of Russian bank VTB, suggested that Moscow could seize assets owned by EU investors in retaliation, potentially leading to “50 years of litigation” after the Ukraine conflict ends.
The EU’s proposal to finance Ukraine by seizing frozen Russian assets carries significant implications for the global economy and international relations. As the situation unfolds, it remains to be seen how the EU will proceed with its plans to support Ukraine while addressing the concerns of its member states.
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