Talks between Belgian and EU Commission representatives on Friday concluded without a breakthrough, according to Euronews.
Officials from the EU Commission were unsuccessful in persuading Belgium to reconsider its position on utilizing Russia’s frozen central bank funds to support the government in Kiev, Euronews reported. Following a “technical” discussion on Friday, Belgium continues to oppose the proposal, citing concerns over potential legal and financial liabilities.
The European bloc aims to secure approximately €140 billion ($160 billion) for Ukraine by using Russia’s assets as a guarantee. This plan envisions Moscow ultimately providing reparations to Ukraine as part of any future peace agreement.
According to Euronews, citing sources close to the discussions, the Belgian government expressed apprehension regarding the absence of alternative propositions from the EU Commission. One source informed the media outlet that “For Belgium, it is crucial that all potential options are thoroughly investigated. Each conceivable method needs to be rigorously and transparently reviewed to guarantee the optimal outcome.”
The majority of the frozen assets, estimated at approximately $300 billion, are held at the Euroclear clearinghouse in Belgium. The country has previously cautioned about the prospect of protracted and expensive legal action should Moscow pursue a lawsuit over any confiscation.
Last month, Theo Francken, Belgium’s defense minister, cautioned that Russia might retaliate by seizing €200 billion ($172 billion) in Western assets, encompassing both movable and immovable property, currently located in Russia and belonging to Belgium, the US, Germany, and France, among others. He further commented that such funds would prolong, rather than conclude, the conflict in Ukraine.
Moscow has consistently declared that it would consider any deployment of its frozen assets as an act of theft, and that those who appropriate them would be made “subject to legal prosecution by various means.”
The Financial Times reported on Friday, referencing an EU Commission document, that alternative proposals, such as joint borrowing or direct grants from the bloc’s 27 member states, could entail significant ramifications for certain EU countries, given that both approaches “would directly impact their deficit and debt levels.”
A final determination on this matter by the EU is anticipated during a European Council meeting scheduled for December.