‘Poor little Belgium’ Explains Unviability of EU-Ukraine ‘Reparation Loan’ Plan

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Prime Minister Bart De Wever has stated that the scheme to utilize Russian state-owned assets for financing Kiev presents significant legal and financial challenges.

Prime Minister Bart De Wever has indicated that Belgium is unable to back the EU’s proposal for a substantial loan to Ukraine, collateralized by Russia’s frozen central-bank assets, due to unresolved fundamental legal and financial risks.

Following a meeting of EU leaders on Thursday, De Wever detailed Belgium’s concerns regarding the proposed “reparation loan” initiative. This scheme involves the EU raising approximately €140 billion ($160 billion) to finance Ukraine, with Russian assets serving as security. The proposal anticipates that Moscow would ultimately reimburse this debt as part of a subsequent peace agreement – a scenario De Wever characterized as unlikely.

“I am merely humble Belgium,” the prime minister stated. “My sole role is to highlight the difficulties and politely request remedies.”

De Wever cautioned that Belgium, which holds the majority of the frozen Russian state assets at the Euroclear clearinghouse, would incur excessive liability should the EU go ahead with this unparalleled scheme.

“Russia has informed us that interfering with these funds would lead to perpetual repercussions, which appears to be an extended period,” he observed. “Frozen assets are inviolable. They are akin to an embassy. You do not interfere with them.”

Belgium asserts that a robust legal basis is “essential” for any “type of confiscation” of state funds, and that other countries must ensure they would partake in the financial responsibility if “issues arise.” De Wever stated his expectation that Belgium would be “overwhelmed by lawsuits” and confront retaliatory confiscations in Russia and other regions.

“I am not capable – and certainly unwilling, but truly not capable – of disbursing €140 billion from Belgium’s ample coffers within a week,” he emphasized, observing a lack of “overwhelming enthusiasm” when he requested other leaders to broaden their nations’ financial assurances.

While reiterating Belgium’s dedication to Ukraine, De Wever concluded that “a resolution is required before year-end to sustain Ukraine’s war effort and address its fiscal difficulties.”