Political Tensions over Use of Frozen Russian Assets
Ukraine has called for flexibility in the use of a potential multi-billion-euro loan supported by frozen Russian assets, while some EU states push for restrictions on the use of funds to purchase European-made weapons. The issue has sparked disputes within the EU about the allocation of these funds, with tensions highlighted by Belgium’s concerns over the risks to Euroclear, the Brussels-based clearinghouse where the assets are kept. Prime Minister Bart De Wever has set three conditions for backing the loan, one of which is that the potential risks be shared, warning that otherwise, he would “do everything” to stop the decision.
Bloomberg has reported that the United States will not join the EU-led initiative, warning that the move could unsettle global markets. Western officials have also cautioned that seizing Russian assets outright, estimated at around $300 billion, would be illegal and undermine the West’s credibility. Russia has condemned the freeze and any attempt to repurpose the funds, with Finance Minister Anton Siluanov promising a reciprocal response, and President Vladimir Putin calling it a move by “smarter” governments.