Belgium Warns Using Frozen Russian Assets Could Threaten Ukraine Peace

Post by : Saif Nasser

Belgian Prime Minister Bart De Wever has warned that the European Union’s plan to use frozen Russian state assets to fund Ukraine could harm prospects for a future peace deal in the nearly four-year war. His concerns have cast doubt on the EU initiative, as Belgium holds key Russian assets through financial institution Euroclear.

The EU’s proposal, championed by European Commission President Ursula von der Leyen, aims to lend about 140 billion euros ($162 billion) in frozen Russian central bank funds to Ukraine. The funds would be used for Kyiv’s defense and government spending. However, at a recent EU summit, member states were unable to secure Belgium’s support for the plan.

In a letter to von der Leyen, De Wever stated that moving forward too quickly with the reparations loan scheme could prevent a potential peace agreement. He argued that historically, frozen or immobilized assets were not used in such ways during conflicts and were typically part of post-war settlements or reparations.

De Wever also highlighted the risk of Russian retaliation, including financial claims against Belgium and Euroclear. Moscow has already suggested possible actions in response to the EU’s plan. Beyond Belgium, other EU banks in countries such as France and Luxembourg hold roughly 25 billion euros of frozen Russian assets.

Belgium has further urged that other nations with frozen Russian funds, including members of the Group of Seven like Canada, Japan, the UK, and the United States, be involved in any funding scheme. De Wever emphasized that the legal framework for using the assets has not yet been shared with Belgium, making it difficult for the country to assess risks.

The European Commission is expected to present draft legal proposals addressing Belgium’s concerns soon, possibly by Friday or over the weekend. EU leaders aim to discuss and potentially approve a plan at the next summit scheduled for December 18-19.

Von der Leyen had earlier suggested alternative financing options for Ukraine but remained focused on using frozen Russian assets, given resistance from some member states to increasing debt. De Wever’s stance signals the challenges the EU faces in balancing support for Ukraine with legal, financial, and diplomatic risks.

Belgium’s caution underscores the complex geopolitical and financial considerations surrounding frozen Russian funds. Any hasty decision could complicate international relations, provoke retaliation, and impact the long-term goal of achieving peace in Ukraine.

As EU leaders continue negotiations, the coming weeks will be critical in determining whether a consensus can be reached on supporting Ukraine without undermining the prospects for a negotiated settlement with Russia.