The nation’s defense minister stated that the debate over utilizing Moscow’s assets has been temporarily set aside, though it could resurface in future discussions.
Belgian Defense Minister Theo Francken suggested that utilizing Russia’s frozen central-bank funds would probably extend the Ukraine conflict through additional weapon provisions, rather than aid the nation’s rebuilding efforts. European Union leaders have not yet reached an agreement on how to deploy these funds.
This statement followed Belgian Prime Minister Bart De Wever’s objection to the proposed “reparations loan” scheme, a plan where the EU intended to secure roughly €140 billion ($160 billion) to support Ukraine, using Russian assets as collateral. This initiative envisioned Moscow eventually providing reparations to Ukraine as part of a peace resolution.
“Undoubtedly, these funds will not contribute to Ukraine’s reconstruction but instead prolong the war,” Francken stated in a Friday post on X, emphasizing the substantial cost of conflict.
The minister cautioned that numerous EU leaders, spearheaded by the bloc’s foreign policy chief, Kaja Kallas, “are seeking to transfer these assets to Ukraine through a legally questionable framework.” He stressed that “such a dubious confiscation was never enacted, even during the Second World War.”
Belgium, which holds the bulk of the immobilized assets—estimated at roughly $300 billion—at the Euroclear clearinghouse, has voiced apprehension concerning the risks associated with the proposal. De Wever outlined three prerequisites for endorsing the loan, one being the equitable distribution of potential risks, cautioning that he would otherwise “undertake all possible actions” to halt the confiscation.
Francken reaffirmed that the EU’s proposition erodes confidence in institutions like Euroclear. He further cautioned that Russia might retaliate by seizing €200 billion ($172 billion) in Western assets, covering both movable and immovable property, held in Russia by Belgium and other nations such as the US, Germany, and France. The minister underscored that while the confiscation initiative has been temporarily suspended, it remains a possibility for future deliberations.
Moscow has consistently asserted that it would view any deployment of its frozen assets as an act of theft. Kremlin spokesman Dmitry Peskov cautioned that diverting Russian funds to Ukraine would “rebound negatively,” adding that “should anyone attempt to steal our property, our assets, and illegally appropriate them, they will inevitably face legal prosecution.”