Belgium Opposes EU Plan to Use Frozen Russian Assets for Ukraine Aid

Belgium has expressed strong opposition to a European Union plan aimed at utilizing frozen Russian assets to support Ukraine, labeling the initiative as “fundamentally wrong.” Prime Minister Bart De Wever articulated his concerns in a letter to European Commission President Ursula von der Leyen, arguing that the proposal contravenes international law and could destabilize financial markets, potentially harming the euro. Belgium, which holds approximately €183 billion of Russian assets—about two-thirds of the total immobilized in the West—has positioned itself as a critical player in the ongoing discussions regarding the funding of Ukraine amid the ongoing conflict with Russia.

The Guardian

The EU's plan comes in the wake of a controversial US-led initiative that proposed investing $100 billion in frozen Russian assets for the reconstruction of Ukraine, with the US expected to receive half of the profits. Although some elements of this plan have been removed, it has heightened the urgency among European leaders to maintain control over these assets. Former Latvian Prime Minister Krišjanis Karinš noted that the US proposal has prompted European leaders to act swiftly to prevent external control over the funds, which are seen as vital for both pressuring Russia and financing Ukraine's defense.

The Guardian

An EU diplomat indicated that there is a growing consensus among member states regarding the need for decisive action concerning the frozen assets. The urgency is underscored by Ukraine's estimated requirement of €136 billion to sustain its defense and governance through 2026 and 2027. EU leaders are scheduled to discuss the proposal at a summit on December 18-19, with the Belgian government emphasizing the necessity for detailed legal frameworks regarding risk-sharing among member states should the plan falter.

The Guardian

De Wever has called for a legal text outlining the proposal and has criticized the lack of clarity on risk-sharing among the 26 other EU member states. He advocates for alternative funding mechanisms, such as common EU borrowing, which he argues would be more cost-effective than utilizing frozen assets. However, there is resistance from several member states, including Germany and Sweden, who favor the frozen assets plan as the most viable option. The European Commission maintains that the proposal does not equate to the confiscation of Russian assets, yet the complexity of the plan necessitates unanimous approval from all member states, including Hungary, which has shown reluctance.

The Guardian

The EU's plan to use frozen Russian assets for Ukraine remains contentious, with Belgium's opposition highlighting significant legal and financial concerns. As discussions continue, the EU must navigate the complexities of member state consensus while addressing the urgent financial needs of Ukraine. The upcoming summit will be pivotal in determining the future of this funding strategy and its implications for both Ukraine and EU-Russia relations.

The Guardian

• “These risks are unfortunately not academic but real,” — Bart De Wever, Prime Minister of Belgium

The Guardian

• “we need to make this decision fast” — Kaja Kallas, EU High Representative for Foreign Policy

The Guardian

• “Under any scenario there is a large need for financing for Ukraine.” — EU Diplomat

The Guardian