Belgium has hit back at an EU plan to use Russia's frozen assets to aid Ukraine, with Prime Minister Bart De Wever describing the scheme as 'fundamentally wrong' and warning it violates international law. In a sharply worded letter to European Commission President Ursula von der Leyen, De Wever said the proposal would destabilise financial markets and damage the euro, posing 'systemic risks for the EU as a financial marketplace'.
Belgium hosts €183bn of Russian assets, about two-thirds of the total immobilised in the West, at the Brussels-based central securities depository Euroclear. De Wever warned that Euroclear could face lawsuits from Russians with claims on the assets, potentially landing the Belgian government with a multibillion-euro bill.
The Prime Minister said he would not sign off on the scheme unless all Belgium's concerns were addressed, including a 'full guarantee' from willing member states if the loan went wrong. He also argued that using the assets for a loan would prevent a peace deal, as they would not be available for Ukraine's reconstruction. In language that will dismay Kyiv's backers, he suggested Ukraine could lose the war, and Russia would legitimately demand the return of its sovereign assets.
The EU is under pressure to finalise the plan after a US-led proposal emerged that would have invested $100bn of frozen Russian assets in 'US-led efforts' to rebuild Ukraine, with the US taking 50% of profits. That idea has since been removed from the latest version of the peace plan, but European leaders now see urgency in acting quickly to keep the funds under European control.
EU foreign policy chief Kaja Kallas said using the frozen assets 'would send the strongest message to Moscow, that it cannot wait us out', adding that 'we need to make this decision fast'. EU leaders are expected to discuss the proposal at a summit on 18 and 19 December. Kyiv is estimated to need €136bn to maintain its defence and keep the country running in 2026 and 2027.
The Belgian government has faulted the lack of detail about risk-sharing with other member states. De Wever's intervention throws into doubt how Europe will fund Ukraine, with many EU governments grappling with tight budgets.
