Belgium Raises Concerns Over EU's Russian Asset Plan
Belgian Prime Minister Bart De Wever has expressed strong reservations and sought comprehensive guarantees from European Union leaders concerning the bloc's proposal to utilize frozen Russian central bank assets to fund a substantial loan for Ukraine. The concerns were articulated during an informal meeting of EU leaders in Copenhagen on Wednesday, October 2, 2025, where the plan to back a €140 billion loan for Ukraine was discussed.
The EU's Proposal and Belgium's Central Role
The European Commission's plan involves leveraging approximately €210 billion in frozen Russian central bank assets within Europe to secure a 'reparations loan' for Ukraine. A significant portion of these assets, estimated between €170 billion and €194 billion, is held by Euroclear, a Brussels-based central securities depository in Belgium. Under the proposed mechanism, profits generated from these immobilized assets would be channeled to Ukraine, with Kyiv only obligated to repay the loan once Russia covers post-war damages. This approach aims to provide Ukraine with much-needed liquidity to continue its resistance against Russia.
Legal and Financial Apprehensions
Prime Minister De Wever highlighted several critical concerns, emphasizing the potential legal and financial ramifications of the plan. He described the proposal as a 'quasi-confiscation' of sovereign funds, warning that the EU would be 'entering uncharted waters' given that international law generally forbids the direct confiscation of sovereign assets. Belgium fears being disproportionately exposed to legal challenges and potential retaliation from Moscow. Russia has already issued warnings, describing any such move as 'pure theft' and threatening 'consequences for eternity' if its assets are used. De Wever also raised concerns about the reputational damage to the euro and the broader European financial system if the perception of asset safety is undermined.
Call for Shared Responsibility and Transparency
A core demand from Belgium is for 'ironclad guarantees' and proportional risk-sharing among all EU member states. De Wever insisted that Belgium cannot bear the risks alone and sought a 'signature' from all EU leaders confirming their collective responsibility should the plan encounter difficulties or legal claims from Russia. European Commission President Ursula von der Leyen has acknowledged this, stating that 'Belgium cannot be the only one bearing the risks' and that 'the risks have to be put on broader shoulders.' Furthermore, De Wever called for greater transparency from other EU countries regarding the Russian assets they hold, noting that an estimated €160 billion in Russian funds are frozen outside of Euroclear in Belgium. Belgium currently transfers approximately €1.3 billion annually in corporate tax generated from these assets to Ukraine, a contribution De Wever highlighted while refuting allegations that Belgium's concerns were motivated by a desire to retain these tax revenues.
Outlook
The discussions in Copenhagen represent an initial step, with leaders expected to revisit the issue at the next EU summit scheduled for October 23-24 in Brussels. The ongoing dialogue aims to address Belgium's concerns and develop a robust framework for the proposed reparations loan to Ukraine.
5 Comments
Comandante
Belgium is right to be hesitant. The risks are enormous.
Mariposa
Russia should absolutely pay for its destruction. This is justice!
Bella Ciao
This sets a dangerous precedent. International law matters.
Habibi
It's morally right to make Russia pay for the damage, but the 'quasi-confiscation' described could open a Pandora's box. The EU must ensure any action doesn't set a precedent that could harm its own long-term financial stability.
Bermudez
The idea of using frozen assets to fund Ukraine is appealing on the surface, yet the warnings about potential damage to the euro's reputation are serious. Balancing immediate aid with long-term economic trust is crucial here.