Belgium Challenges EU's Russian Assets Plan
Belgium has launched a forceful rejection of a European Union proposal to utilise frozen Russian state assets to fund assistance for Ukraine, describing the scheme as "fundamentally wrong" and casting significant doubt on Europe's future funding plans for Kyiv. The intervention from Belgian Prime Minister Bart De Wever comes in a sharply worded letter to European Commission President Ursula von der Leyen, where he argued the plan violates international law and could destabilise financial markets.
Systemic Risks and Legal Concerns
In his communication, De Wever detailed that the proposal would instigate uncertainty and fear in financial markets, potentially damaging the euro's standing. "These risks are unfortunately not academic but real," he wrote. The significance of Belgium's position is magnified by the fact that the Brussels-based central securities depository, Euroclear, holds approximately €183 billion of Russian assets. This represents about two-thirds of all Russian assets immobilised in the West.
The Prime Minister warned that Euroclear could face lawsuits from Russians with claims on the assets, potentially leaving the Belgian government with a multibillion-euro bill. He stated he would not approve the scheme unless all of Belgium's concerns were addressed, including "a full guarantee to be provided by willing member states" should the proposed loan to Ukraine fail.
Broader Implications for Ukraine and EU Unity
De Wever's letter also contained language that will concern many of Ukraine's supporters within the EU. He suggested that moving forward with the plan could prevent a future peace deal, as the assets would be unavailable for Ukraine's reconstruction. Strikingly, he indicated that Ukraine could lose the war, noting that "In the very probable event Russia is ultimately not officially the losing party, it will, as history has shown in other cases, be legitimately asking for its sovereign assets to be returned."
This Belgian resistance emerges amid growing pressure on the EU to finalise an agreement on using Russia's immobilised assets. The urgency was sharpened by the recent revelation of a US-led plan, which initially proposed that $100 billion in frozen Russian assets would be invested in US-led efforts for Ukraine. Although these specific ideas were reportedly removed from the latest version, they highlighted for European leaders the need to act decisively to maintain control over the funds.
EU leaders are scheduled to discuss the contentious proposal at a summit on 18 and 19 December. The European Commission is expected to present a draft legal text imminently that would use the Russian assets as the basis for a €140 billion (£122 billion) loan for Ukraine, which is estimated to need €136 billion to maintain its defence and basic functions in 2026 and 2027.
