European Dispute: Belgium Tightens Conditions for Using Russian Assets to Support Ukraine

Belgium Demands Legal and Financial Safeguards Before Loaning Frozen Russian Funds

Belgium is facing pressure from its European partners to allow the use of frozen Russian assets in the country as a loan to strengthen Ukraine’s defense, after several Western capitals changed their stance on the matter. Brussels requires strict legal and financial guarantees before taking any action with these funds.

Background and Context

Around €190 billion of Russian sovereign assets were frozen at the Euroclear institution in Brussels in response to Russia’s military operation in Ukraine in 2022. Western countries, including the United States, Germany, and Belgium, had been hesitant to act on these funds due to potential legal and financial consequences.

In recent weeks, U.S. officials have urged G7 allies to use or seize Russian assets to support Ukraine’s defense, while German Chancellor Friedrich Merz proposed using €140 billion of these funds as a loan to strengthen Ukraine’s military capabilities.

Belgian Conditions

Belgian Prime Minister Bart De Wever emphasized the need to cover legal and financial risks and to guarantee the full amount before approving any loan from the frozen assets. He outlined three main conditions: rejection of any measure that could be interpreted as asset seizure, provision of precise legal guarantees to share risks with other European countries, and assurance of rapid repayment if Euroclear is required to return the funds to Russia.

European Position

The European Commission and German Chancellor Friedrich Merz proposed using part of the Russian assets as a loan to strengthen Ukraine’s defense, arguing that Moscow should bear the cost of the war launched by Russian President Vladimir Putin. The Commission also suggested a clause to secure the loan through emergency national commitments in case Russia begins paying reparations.

Diplomats noted that countries such as Poland and Denmark showed greater willingness to take on the risks and support Ukraine without requiring legal and financial risk-sharing with Belgium, adding pressure on Brussels.

Legal and Financial Dimensions

Belgium views the current plan as potentially a near-total seizure of assets, which could violate investment agreements with Russia and Luxembourg. The government emphasized that the proposed emergency commitments do not adequately address the legal and financial risks, which remain a primary concern in handling the assets.

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