EU increases pressure on Belgium over frozen Russian assets for Ukraine

12:32

By: Azzat Manal

EU increases pressure on Belgium over frozen Russian assets for Ukraine

European Union governments are intensifying pressure on Belgium to support the use of frozen Russian sovereign assets to help finance Ukraine, as European capitals search for additional ways to provide long-term financial assistance to Kyiv.

According to European diplomats and officials cited by Politico, a group of countries led by Germany has revived discussions on using the frozen assets as the basis for a new financial mechanism for Ukraine. One proposal would involve providing Kyiv with a new loan backed by the Russian funds rather than directly confiscating the assets.

The debate comes as the European Union considers substantial financial commitments to Ukraine for the coming years. European officials have discussed a package worth around €100 billion as part of the bloc’s proposed long-term budget for 2028–2034, with the new mechanism potentially covering at least part of that amount.

Belgium remains the main obstacle to the plan because a large share of Russia’s frozen sovereign assets held within the EU is deposited with Euroclear, the Brussels-based international securities depository. This places Belgium at the center of the legal and financial risks surrounding any decision to use the funds.

Belgian authorities have repeatedly expressed concern that their country and Euroclear could face significant legal claims, financial liabilities and possible retaliatory measures from Moscow if the assets were transferred or used in a way that Russia considers unlawful.

Brussels previously resisted proposals to confiscate the Russian assets outright, reflecting concerns over the legal basis for permanently transferring sovereign property and the potential consequences for the European financial system.

The distinction between freezing and confiscating the funds is central to the debate. EU countries have already immobilized large amounts of Russian central bank assets following Moscow’s military operation in Ukraine. However, permanently taking ownership of the principal remains far more controversial because of questions surrounding sovereign immunity, international law and potential legal challenges.

European governments supporting the initiative argue that Russia should bear a greater share of the financial burden associated with the war and Ukraine’s reconstruction. Supporters also see the frozen assets as a potentially significant source of funding at a time when national budgets face competing demands.

Belgium, however, is concerned about being left responsible for the consequences if Russian institutions pursue legal action or Moscow introduces countermeasures against European interests. Russia has repeatedly condemned the freezing of its assets as unlawful and has warned that confiscation could trigger retaliatory steps.

The disagreement highlights broader divisions within Europe over how to maintain financial support for Ukraine without placing excessive pressure on national budgets. Some governments favor using Russian assets as a way of reducing the burden on European taxpayers, while others remain cautious about the legal and economic risks.

Any final decision is likely to require extensive negotiations among EU member states. Belgium’s position will be particularly important because of the concentration of Russian sovereign assets under the jurisdiction of institutions based on its territory.

The issue is therefore becoming an increasingly important test of the EU’s ability to coordinate its Ukraine policy while balancing political objectives with financial stability and legal considerations.