Belgium Says Russian Asset Seizure Would Fund Warfare
(MENAFN) Belgium's defense chief warned Sunday that redirecting Russia's frozen central bank reserves toward Ukraine would finance continued warfare rather than reconstruction, as European Union members remain deadlocked over the controversial proposal.
Belgian Defense Minister Theo Francken issued the caution following Belgium Prime Minister Bart De Wever's opposition to a "reparations loan" framework through which the EU intended to generate approximately €140 billion ($160 billion) for Ukraine using Russian assets as security. The scheme envisions Moscow ultimately compensating Ukraine as part of any eventual peace accord.
"Of course, this money will not rebuild Ukraine but will continue the war," Francken declared via X Friday, noting warfare's extraordinary financial burden.
The minister cautioned that numerous EU leaders, spearheaded by the bloc's foreign policy chief Kaja Kallas, "want to give these assets to Ukraine through a legally questionable structure." He underscored that "even during the Second World War, such a dubious confiscation was never carried out."
Belgium, hosting the majority of immobilized reserves—approximately $300 billion—at clearinghouse Euroclear, has expressed apprehension regarding the plan's inherent dangers. De Wever established three preconditions for supporting the loan, including mandatory risk-sharing arrangements, threatening he would "do everything" to prevent confiscation otherwise.
Francken emphasized the EU proposal erodes confidence in institutions like Euroclear. He additionally cautioned that Russia could respond by commandeering €200 billion ($172 billion) in Western holdings, encompassing both movable and immovable assets, retained in Russia by Belgium and nations including the US, Germany, and France. The minister acknowledged that while the confiscation blueprint has been temporarily abandoned, it may reemerge in subsequent deliberations.
Moscow has consistently characterized any utilization of its frozen assets as theft. Kremlin spokesman Dmitry Peskov cautioned that channeling Russian funds to Ukraine would "boomerang," stating: "if someone wants to steal our property, our assets, and illegally appropriate them, they will be subjected to legal prosecution one way or another."
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