Belgium Challenges EU's Russian Asset Plan for Ukraine
Belgium has launched a forceful challenge against a European Union proposal to utilise frozen Russian assets to support Ukraine, labelling the scheme as "fundamentally wrong" and casting significant doubt on how Europe will finance Kyiv's ongoing defence and reconstruction. In a strongly worded letter to European Commission President Ursula von der Leyen, Belgian Prime Minister Bart De Wever argued the plan breaches international law and could destabilise financial markets, damaging the euro's standing.
Legal and Financial Risks Cited
The core of Belgium's opposition lies in the substantial risks it perceives. The country hosts an estimated €183 billion of Russian central bank assets at the Brussels-based securities depository, Euroclear, representing about two-thirds of the Russian funds immobilised in the West. De Wever warned that the proposal could instigate uncertainty and fear in financial markets. He further cautioned that Euroclear could face lawsuits from Russian entities claiming the assets, potentially leaving the Belgian government with a multibillion-euro bill.
De Wever stated he would not approve the scheme unless all of Belgium's concerns were addressed. His demands include a full financial guarantee from willing EU member states should the proposed massive loan to Ukraine fail. The European Commission is expected to soon present a draft legal text outlining the plan, which would use the immobilised Russian assets as collateral for a €140 billion (£122 billion) loan for Ukraine.
Broader Implications for Peace and US Pressure
The Belgian Prime Minister also presented a stark geopolitical argument, suggesting that moving forward with the plan could prevent a future peace deal. He contended that if Russia is not officially the losing party in the conflict, it would legitimately demand the return of its sovereign assets for Ukraine's reconstruction. In language that may concern Ukraine's staunchest EU allies, he pointedly referred to the scenario where "Ukraine could lose the war."
This intervention comes amid heightened pressure on the EU to finalise its approach to the frozen assets. This urgency was amplified after a controversial US-led proposal emerged last week, which initially suggested investing $100 billion (€86 billion) of the frozen assets in US-led rebuilding efforts in Ukraine. Although these specific ideas were reportedly removed from the latest version of the US peace plan, they underscored to European leaders the need to act decisively to maintain control over the funds, which are predominantly held within Europe.
An EU diplomat confirmed that the "overwhelming majority of member states feel there is an increased urgency to take decisions" regarding the frozen assets. EU leaders are scheduled to discuss the contentious issue at a summit on 18-19 December, as Kyiv is estimated to need €136 billion to sustain its defence and essential state functions in 2026 and 2027.
