Belgium cautions about confiscating Russian money
(MENAFN) Belgium's Finance Minister Vincent Van Peteghem reiterated the country's stance against seizing Russian assets that have been frozen by the European Union as part of sanctions imposed in response to the Ukraine conflict. Speaking after the European Union's Economic and financial Affairs Council (ECOFIN) meeting in Luxembourg, Van Peteghem emphasized the complexities and risks associated with such a move.
The European Union, along with other Western nations, froze approximately USD300 billion in assets belonging to the Central bank of Russia following Russia's military actions in Ukraine starting February 2022. The bulk of these assets, totaling around USD280 billion, are held in the European Union, primarily managed by Euroclear, a depositary and clearing house based in Belgium.
Van Peteghem clarified that Belgium had opted not to touch the frozen assets themselves, citing concerns over potential legal and financial implications that could arise from altering ownership titles. He underscored the importance of risk sharing and cautious implementation of financial instruments in discussions within the European Union regarding the frozen assets.
The minister's comments come amid ongoing debates within the G7 nations, where a recent agreement was reached to utilize interest accrued from the frozen Russian assets to fund a USD50 billion loan aimed at supporting Ukraine's defense efforts and infrastructure reconstruction. Despite these discussions, Van Peteghem reiterated that Belgium did not support the outright confiscation of the frozen assets, aligning with previous statements from other European Union leaders, such as Italian Prime Minister Giorgia Meloni, who emphasized that asset confiscation was not under consideration.
In April, Van Peteghem had indicated that the European Union was nearing a political consensus on redirecting the profits generated by Russia's central bank reserves. He noted the potential commencement of tax collections on these reserves as early as July 1, highlighting ongoing European Union efforts to leverage financial measures in response to Russia's actions in Ukraine while balancing legal and financial considerations.
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