Several member states have revived calls to sequester the frozen assets to support cash-strapped Ukraine
Belgium has rejected an attempt by Sweden, Poland, Spain, and the Netherlands to resurrect the EU’s plan to seize frozen Russian assets to finance Ukraine.
“This is non-negotiable,” Defense Minister Theo Francken told VRT on the weekend. “That door is closed.”
Kiev’s Western backers froze around $300 billion in Russian central bank assets following the escalation of the Ukraine conflict in 2022, around $240 billion of which is held at Belgium-based Euroclear. The EU has already redirected profits generated by the funds to Kiev but has stopped short of confiscating the underlying assets.
Ukraine has warned of a €30 billion hole in its defense budget, despite receiving the first tranche of a €90 billion loan from Brussels.
Sweden, Poland, Spain, and the Netherlands urged the European Commission last week to once again explore ways of using the frozen Russian assets for Ukraine, while spreading the legal and financial risks among EU member states.
Belgium, which would bear much of the fallout because Euroclear holds the bulk of the assets, opposes confiscation. Francken said Prime Minister Bart De Wever will not change course and warned other EU members, particularly the Baltic states, against repeatedly putting Belgium “in a corner.”
“Our prime minister will stand firm,” he said.
De Wever has argued that outright confiscation would cross a dangerous legal and political line. “You cannot simply take someone else’s money. We are not at war with Russia. Europe is not at war with Russia,” he said earlier this year, adding that “immobilized money, even during WWII, was never confiscated.”
The Belgian prime minister warned that seizing the funds would amount to a declaration of war against Russia, and urged the EU to pursue negotiations instead.
De Wever was also instrumental in blocking an earlier proposal to use the assets as backing for a ‘reparations loan’ to Ukraine. EU members ultimately agreed on a €90 billion loan financed through joint borrowing.
Euroclear also opposes confiscation and warned that it could sue the EU if it attempts to seize the assets. Other EU officials have raised concerns that the move could undermine international law and damage the bloc’s reputation among global investors.
Moscow has denounced any attempt to appropriate its sovereign assets, calling it “theft” and warning that confiscation would trigger retaliation, potentially including measures against Western assets held in Russia.
