The Belgian Prime Minister Bart De Wever (Flemish nationalist) has said in a letter to the European Commission President Ursula von der Leyen that using frozen Russian assets for Ukraine would be a “fundamental error” and that to do so would have legal and geopolitical consequences for Europe.
Belgian PM warns EU Commission President that using frozen Russian assets would undermine chance of Ukraine peace deal
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The discussion revolves around more than 210 billion euro in Russian assets that have been frozen in the EU since the start of the war in Ukraine. More than 180 billion euro of this is at Euroclear in Brussels. Last month European leaders tried to reach a consensus to use around 140 billion euro of the frozen funds as collateral for a loan to Ukraine. However, Belgium opposed this .
In his letter, Mr De Wever warns that acting too quickly could have dire consequences for a future peace agreement. “If we rush ahead with the proposed reparations loan plan, we risk the collateral damage of effectively making a future peace agreement impossible”.
The Belgian Prime Minister he had previously stated his objections but did not receive sufficient answers. “To date, we have not seen any proposal on the legal wording of the plans”.
Unprecidented
Mr De Wever points out that never before have frozen foreign assets been used while a conflict is ongoing. According to the Belgian PM, such assets are only used for reparations after a war has ended. “The harsh reality is that at no time in history have frozen foreign assets been reallocated during a war”.
Mr De Wever goes on to say that the plan could not only undermine international law but also cause unrest on the financial markets. This would have consequences for member states, the euro and for Euroclear. He adds that there is "a real danger" that the EU will have to repay the money.
Retaliatory measures from Russia
Mr De Wever warns that Russia could take countermeasures, in particular against Euroclear and Belgium. President Vladimir Putin said on Thursday that the Russian government is preparing countermeasures if Russian funds are "stolen."
The Russian parliament passed a resolution calling for countermeasures last week. The Belgian Prime Minister points to the other options that the European Commission has put on the table. He says that a joint loan for around 45 billion euros in 2026 could turn out cheaper if we look at all the risks.