Belgium Rejects Direct Confiscation of russian Assets for ukraine Aid, Cites Financial Stability Concerns
Brussels, Belgium – Belgian Foreign Minister Maxime Prévot has firmly stated that directly seizing Russian sovereign assets frozen within Belgium to provide a “repair loan” to Ukraine is “not an option.” the statement comes amidst growing European debate,spurred by European Commission President Ursula von der Leyen,regarding the potential use of thes funds to aid Ukraine’s reconstruction. However, Prévot emphasized Belgium’s preference for option approaches, prioritizing the stability of European financial centers.
The debate centers around approximately €200 billion in Russian assets held by Euroclear in belgium, frozen as part of international sanctions following Russia’s invasion of Ukraine. While von der Leyen suggested utilizing the interest generated by these assets for a loan to Ukraine, Prévot’s position reflects a longstanding Belgian concern about the precedent set by outright confiscation.
“We cannot afford in Europe to give the political signal to those who have capital on European financial centers that, by political motivations, we could confiscate these assets tomorrow,” Prévot stated on Thursday, reiterating a position held by both previous and current Belgian Prime Ministers.
Belgium currently utilizes the interest earned on the frozen assets – approximately one billion euros – to support Ukraine, derived from corporate tax levied on Euroclear. Prévot also highlighted the strategic value of the assets themselves as a “negotiation lever with Russia.” He noted that the interest generated has already yielded €50 billion for potential use in Ukraine’s recovery.
The Belgian stance underscores a broader concern within Europe about the potential ramifications of confiscating sovereign assets. While the desire to support Ukraine is strong, policymakers are wary of undermining confidence in European financial institutions and potentially triggering retaliatory measures.
This progress signals a potential divergence in approaches within the EU regarding the financial support of Ukraine, with Belgium advocating for a more cautious path focused on utilizing generated revenue and maintaining the integrity of its financial infrastructure.
Keywords: Ukraine, Russia, Belgium, Frozen Assets, Confiscation, euroclear, Ursula von der Leyen, Maxime Prévot, Financial Stability, Sanctions, European Union, Reconstruction, Aid, Negotiation.
