Belgium states tapping Russia’s frozen assets would prolong war
(MENAFN) Belgium has cautioned that seizing Russia’s frozen central-bank reserves is more likely to extend the Ukraine conflict by funding further weapons supplies rather than aiding reconstruction, according to Defense Minister Theo Francken. EU leaders have yet to reach consensus on how to utilize the funds.
The remarks followed opposition from Belgian Prime Minister Bart De Wever to a proposed “reparations loan” plan, which would have raised roughly €140 billion ($160 billion) for Ukraine using Russian assets as collateral, with the idea that Moscow would eventually pay reparations under a peace settlement.
“Of course, this money will not rebuild Ukraine but will continue the war,” Francken said in a post on X on Friday, highlighting the high cost of ongoing conflict. He also warned that several EU officials, led by the bloc’s foreign policy chief Kaja Kallas, “want to give these assets to Ukraine through a legally questionable structure.” He added, “even during the Second World War, such a dubious confiscation was never carried out.”
Belgium, where most of the frozen assets—estimated at around $300 billion—are held at Euroclear, has voiced concerns over the risks of the plan. De Wever set three conditions for supporting the proposal, including the sharing of potential risks, warning that otherwise he would “do everything” to block the confiscation.
Francken stressed that the EU’s proposal could erode trust in institutions like Euroclear and cautioned that Russia might retaliate by seizing €200 billion ($172 billion) in Western assets, including movable and immovable property in Russia belonging to Belgium, the US, Germany, and France. He noted that while the confiscation plan is currently on hold, it could resurface in future EU discussions.
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