The European Commission is presenting Ukraine with two options for financial support in its conflict with Russia over the next two years. The legal consequences for Belgium regarding the possible use of Russian funds frozen at the Belgian financial institution Euroclear are the cause of great concern here. Belgian foreign minister Maxime Prévot (Francophone centrist Les Engagés, photo above) shares the concerns of prime minister Bart De Wever (Flemish nationalist N-VA) and called for extensive guarantees to protect Belgium from possible negative consequences.
Foreign News
Belgium not satisfied with EU guarantees regarding seizure of Russian funds to help Ukraine
Colin Clapson
Published:
Updated:
According to Ursula von der Leyen, European Commission president, there are two options for providing financial support to Ukraine in its conflict with Russia. Either the EU can take out loans itself, as it did after the coronavirus crisis to strengthen the economy. This means that member states would have to contribute their own funds, or Russia's funds blocked in Belgium could be used to provide Ukraine with €90 billion euros in resources.
The rest of the €140 billion required would come from other European sources. It is now up to the EU member states to decide how they want to proceed. Ukraine needs the money by spring 2026. The EU is aiming to reach an agreement on this matter by the EU summit on December 18.
The Belgian authorities have many reservations about the use of the Russian billions blocked at Euroclear. They feel there are too many risks if Russia reclaims these funds – risks that Belgium would like to share with all EU countries and not just be responsible for itself. Commission President von der Leyen says she has taken note of Belgium's objections and is addressing almost all of them.
Belgian government circles have indicated that they do not share Von der Leyen's assessment. Belgium, for example, maintains that it cannot be asked to bear the risks of such an operation alone. The Commission promises that the member states will guarantee the full amount and that the risks will be shared equally, but according to Belgian sources, the risks will not be covered if Belgium or Euroclear are ordered to pay damages.
Belgian foreign minister Prévot said on Wednesday that what is being offered is not enough for Belgium: “We are very frustrated that our voices are not being heard. Our concerns are being downplayed and the text proposed today by the European Commission does not adequately address them. It is unacceptable to use Russian money and burden Belgium with the associated risks and leave it to its own devices.”
Euroclear and Russian assets
Euroclear is a Belgian financial institution headquartered in Brussels. The Russian government deposits at Euroclear amount to €185 billion. This money has been frozen by the European Commission since Russia's further invasion of Ukraine (2022). Now Europe wants to use part of this money as a loan to Ukraine, which could then use it to purchase weapons.
However, the Belgian government rejects this: firstly, because it would give Belgium a very unreliable image on the international financial markets, and secondly, because Belgium fears Russia's reaction. Russia has already issued threats against Belgium.
The government fears being left in the lurch by the EU if the Russians demand their money back, because such a move would take Belgium into legally uncharted territory.