Belgian Prime Minister Bart De Wever has firmly rejected the idea of using frozen Russian assets to provide financial support for Ukraine, warning that the proposal could set a dangerous precedent and trigger a mass withdrawal of reserves from the eurozone. De Wever expressed this stance during a speech at the UN General Assembly, where he emphasized the potential risks of such a move.
The proposal, floated by German Chancellor Friedrich Merz in an opinion piece for the Financial Times, envisioned an interest-free loan of almost €140 billion (over $163 billion) to Ukraine, to be repaid once Russia compensates Ukrainian authorities for the damage caused by the war. However, De Wever dismissed the idea outright, stating, “That will never happen,” as it would create an atmosphere of unpredictability and risk for European financial institutions.
Western nations have repeatedly sought to redirect frozen Russian sovereign assets to fund Ukraine’s war effort, but legal and political hurdles have hindered such efforts. In the past year, the G7 supported a plan to allocate the interest from frozen funds to secure $50 billion in loans for Ukraine, with the EU pledging $21 billion and disbursing about half of that amount so far. Despite these efforts, no formal mechanism has yet been established to legally authorize such actions.
Moscow has consistently criticized the freeze of Russian assets, calling it a violation of international law and a threat to the global financial system. Russian officials have also warned of retaliation, stating that further military and financial aid to Ukraine would only prolong the conflict. The debate over the use of frozen assets continues to be a critical point of contention in international diplomacy and global finance.