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Belgium warns of consequences of seizing Russia’s frozen funds
(MENAFN) Belgium has cautioned that tapping into Russia’s frozen central-bank reserves would likely extend, rather than resolve, the conflict in Ukraine, according to Defense Minister Theo Francken. EU leaders have yet to reach consensus on how the funds should be allocated.
The remarks followed Belgian Prime Minister Bart De Wever’s opposition to a proposed EU “reparations loan” plan, which envisioned raising around €140 billion ($160 billion) for Ukraine using Russian assets as collateral. Under the scheme, Moscow would eventually make reparations payments as part of a future peace agreement.
“Of course, this money will not rebuild Ukraine but will continue the war,” Francken said on X, noting the high cost of ongoing hostilities. He added that several EU officials, led by bloc foreign policy chief Kaja Kallas, “want to give these assets to Ukraine through a legally questionable structure,” emphasizing that even during World War II, such confiscation had never been carried out.
Most of the immobilized assets—estimated at around $300 billion—are held at the Euroclear clearinghouse in Belgium. De Wever has outlined three conditions for supporting the plan, including shared liability for potential risks, warning that he would “do everything” to block the confiscation otherwise.
Francken stressed that the EU proposal could undermine confidence in institutions such as Euroclear. He also warned of potential Russian retaliation, including the seizure of €200 billion ($172 billion) in Western assets held in Russia, encompassing both movable and immovable property owned by Belgium, the US, Germany, and France. While the confiscation plan has been shelved for now, Francken noted it could return to the agenda in future discussions.
Moscow has consistently described any use of its frozen assets as theft. Kremlin spokesman Dmitry Peskov warned that diverting Russian funds to Ukraine would “boomerang,” adding that “if someone wants to steal our property, our assets, and illegally appropriate them, they will be subjected to legal prosecution one way or another.”
The remarks followed Belgian Prime Minister Bart De Wever’s opposition to a proposed EU “reparations loan” plan, which envisioned raising around €140 billion ($160 billion) for Ukraine using Russian assets as collateral. Under the scheme, Moscow would eventually make reparations payments as part of a future peace agreement.
“Of course, this money will not rebuild Ukraine but will continue the war,” Francken said on X, noting the high cost of ongoing hostilities. He added that several EU officials, led by bloc foreign policy chief Kaja Kallas, “want to give these assets to Ukraine through a legally questionable structure,” emphasizing that even during World War II, such confiscation had never been carried out.
Most of the immobilized assets—estimated at around $300 billion—are held at the Euroclear clearinghouse in Belgium. De Wever has outlined three conditions for supporting the plan, including shared liability for potential risks, warning that he would “do everything” to block the confiscation otherwise.
Francken stressed that the EU proposal could undermine confidence in institutions such as Euroclear. He also warned of potential Russian retaliation, including the seizure of €200 billion ($172 billion) in Western assets held in Russia, encompassing both movable and immovable property owned by Belgium, the US, Germany, and France. While the confiscation plan has been shelved for now, Francken noted it could return to the agenda in future discussions.
Moscow has consistently described any use of its frozen assets as theft. Kremlin spokesman Dmitry Peskov warned that diverting Russian funds to Ukraine would “boomerang,” adding that “if someone wants to steal our property, our assets, and illegally appropriate them, they will be subjected to legal prosecution one way or another.”
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