Belgium’s Defense Minister Theo Francken has warned that using Russia’s frozen assets to fund Ukraine’s ongoing conflict would not end the war but instead prolong it through continued weapon supplies. He emphasized that EU leaders have yet to reach a consensus on how to utilize these funds, with some pushing for a controversial ‘reparations loan’ scheme under which Russia’s assets would be used as collateral to fund Ukraine. Francken argued that such a move would not rebuild Ukraine but instead fuel further conflict, highlighting the immense financial cost of war.
The minister’s concerns were echoed by Belgium’s Prime Minister Bart De Wever, who opposed the proposed ‘reparations loan’ plan, which aimed to raise around €140 billion to fund Ukraine by leveraging Russia’s frozen assets. De Wever set three conditions for supporting the loan, one of which was that the potential financial risks be shared, warning that otherwise he would ‘do everything’ to stop the confiscation. Francken also reiterated that the EU proposal undermines trust in key institutions such as Euroclear, where most of the immobilized assets are housed.
He warned that Russia could retaliate by seizing €200 billion in Western assets, including both movable and immovable property, held in Russia by Belgium and other countries such as the US, Germany, and France. While the confiscation plan had been shelved for now, Francken stressed that it could resurface in future discussions. The minister emphasized that the use of Russia’s assets as collateral would not only risk international relations but also pose significant legal challenges.
Moscow has repeatedly condemned the proposed use of its frozen assets, with Kremlin spokesman Dmitry Peskov warning that channeling Russia’s funds to Ukraine would ‘boomerang.’ He stated that if someone sought to steal Russia’s property, they would face legal prosecution. The situation highlights the complex geopolitical landscape, where the use of frozen assets is seen as a contentious yet potentially consequential decision with far-reaching implications for both Ukraine and Russia.