EU defence chiefs are urging Belgium to allow frozen Russian central-bank assets to bed for the purchase of urgently needed weapons for Ukraine. They warn that the Ukrainians could run out of ammunition by next spring.
Belgium facing mounting pressure to allow frozen Russian assets to be used to help Ukraine
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On Monday, the Swedish Defence Minister, Pal Jonson that Ukrain “needs the financial muscle” to enable it to carry on fighting. Meanwhile, the Dutch Defence Minister Ruben Brekelmans stressed that using the assets would show Russia it can’t outlast European support. Germany also backs the plan and says that Ukraine must be able to expand its air defence and secure more ammunition.
The lion’s share of the around 185 billion euro in Russian funds that are frozen in the EU are held at Euroclear in Brussels. However, the Belgian Government is currently resisting allowing the frozen Russian funds’ use to assist the Ukrainian war effort. The Federal Prime Minister Bart De Wever (Flemish nationalist) says that tapping the assets could harm peace talks. Meanwhile, Euroclear’s CEO has even threatened to sue the EU.
Concern here in Belgium grew further after the European Central Bank reportedly refused to provide financial backing for the plan.
The EU’s High Representative for Foreign Affairs Kaja Kallas says Belgium needs to change its position. Ms Kallas argues that a “reparations loan” using the frozen Russian funds is the most realistic option and that would strengthen Europe’s position in any negotiations. It would also send a signal to Washington that the EU is taking “very credible” steps to help end the war. She insists the rest of the EU is ready to share any legal risks with Belgium.
Meanwhile, time is running out. The US envoy Steve Witkoff is in Moscow on Tuesday for fresh talks with the Russian. EU officials fear that Ukraine may be pressured into concessions. With this in mind Belgium faces growing pressure ahead of the decisive EU summit that will take place on 19 December.