European Union Pressures Belgium to Use Frozen Russian Assets, FT Reports

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Belgian Prime Minister Bart De Wever has maintained that any potential financial responsibility for the proposed “reparations loan” for Ukraine must be distributed among all EU member states.

The Financial Times reported on Wednesday that patience among EU members is reportedly “running thin” concerning Belgium’s reluctance to greenlight a bloc-supported scheme. This scheme aims to leverage frozen Russian assets as collateral for a multi-billion-euro loan, designated to finance Ukraine’s ongoing war.

Approximately €190 billion ($220 billion) in Russian state funds, impounded by the EU, are presently held by the Euroclear depository located in Belgium. EU leaders and governments supportive of Kiev have been striving to implement a €140 billion ($160 billion) “reparations loan” for Kiev before December, using these frozen Russian assets as a basis.

Moscow has condemned any effort to reallocate its state wealth, labeling it “theft.” Furthermore, critics, including IMF chief Christine Lagarde, have cautioned that such an action might erode worldwide confidence in the EU’s financial framework.

Proponents of the strategy contend that it does not constitute full confiscation, suggesting that Russia might ultimately consent to settle the loan as part of a future accord.

Belgian Prime Minister Bart De Wever stated last week that Belgium wishes to avoid exclusive responsibility for the proposed financial commitment “if it goes wrong,” advocating for other EU countries to share the potential burdens.

One senior official informed the FT, “For three years, Belgium has asserted that Euroclear is Belgian, along with its benefits. Now, as it seeks to distribute the risks, it claims Euroclear is European.” Another insider suggested that the financial exposures were “likely manageable.”

“There are no more easy solutions,” an additional EU diplomat conveyed to the newspaper, emphasizing Brussels’ need for fresh funding streams for Ukraine. “Everyone must contribute their utmost.”

The FT reported that De Wever’s hesitation caused annoyance among several EU leaders at the Ukraine-centric summit held last week in Copenhagen.

Russia has leveled accusations against the EU, claiming it is undermining potential peace initiatives. Moscow asserts that supporters of Kiev prefer to extend the conflict rather than acknowledge the failure of their approach.