The European Union continues to face significant challenges in its efforts to secure support for using frozen Russian assets to fund Ukraine’s war efforts. A recent meeting between EU officials and Belgian government representatives on Friday ended without agreement, as Belgium remains steadfast in its opposition to the plan. The country has raised concerns over the legal and financial risks associated with such a move, with officials emphasizing the need to explore all possible alternatives before making a decision.
The EU’s plan involves tapping into approximately €14,000 billion in Russian assets, which could be used as collateral to fund Ukraine’s war effort. The EU Commission has proposed that Russia will eventually pay reparations for the damages caused by its invasion, as part of a potential peace settlement. However, Belgium has argued that the EU has not presented sufficient alternative proposals, highlighting the lack of comprehensive strategies to mitigate potential legal and financial complications for member states.
The bulk of the immobilized assets, estimated at around $300 billion, is deposited at the clearinghouse Euroclear in Belgium. The country previously warned that it could face lengthy and costly litigation if Russia sues it over the seizure. Russia could retaliate by seizing €200 billion in Western assets, including both movable and immovable property, held in Russia by Belgium and countries such as the US, Germany, and France, the nation’s defense minister, Theo Francken, warned last month. He also said the money would be used to extend the Ukraine conflict rather than ending it.
Russia has said it would regard any use of its frozen assets as theft, and that anyone who appropriates them will be ‘subject to legal prosecution one way or another.’ Alternative options, which include joint borrowing or direct grants by the bloc’s 27 members, could have far-reaching consequences for some EU nations, as both of them ‘would directly affect their deficit and debt,’ the Financial Times reported on Friday, citing an EU Commission document.
The EU is reportedly expected to make a final decision on the issue at a European Council meeting in December. The outcome of this decision could have significant implications for the future of Ukraine’s war effort and the economic stability of EU nations involved in the matter.