A blunt warning from Brussels exposes divisions over who should carry the legal risks as Ukraine’s funding needs intensify.
Belgium refuses to support the use of frozen Russian assets to finance Ukraine, despite a new initiative by four European Union member states. Brussels insists that it is not prepared to assume disproportionate legal and financial risks.
As reported by euractiv.com.
Belgian Defense Minister Theo Francken said on Friday evening during the Flemish broadcaster VRT’s “Terzake” program that the country’s position remained unchanged.
This is not open to discussion. The door is closed.
– Theo Francken
Four EU countries propose reviving the plan
Sweden, Poland, the Netherlands, and Spain have called on the European Commission to find new ways to use around €200 billion in frozen Russian assets to support Ukraine.
An attempt to implement a similar mechanism was discussed at the EU summit in December. At the time, the initiative led by Germany and the European Commission proposed creating a €210 billion “reparations loan” for Ukraine.
Belgian leader Bart De Wever blocked the plan. He explained that the mechanism could leave Belgium vulnerable to lawsuits and other legal action by Russia. Most of the frozen Russian assets are held by the Belgian institution Euroclear.
Francken said that the Belgian prime minister would continue to firmly defend this position.
Brussels warns the Baltic states
The defense minister acknowledged that Belgium’s refusal had caused frustration among its partners. He specifically drew attention to Lithuania, Latvia, and Estonia, which are among the most vocal supporters of the reparations loan.
They should also be careful about constantly putting this issue back on the table and backing us into a corner. I don’t think that is wise.
– Theo Francken
Francken also noted that Lithuania, Latvia, and Estonia receive substantial support from Belgium.
Belgian government officials strike different tones
Francken’s uncompromising statement differs somewhat from the position of Belgian Foreign Minister Maxime Prévot. Earlier this month, he did not rule out using the frozen assets, provided that legal liability was shared fairly among all EU countries.
Sweden’s letter also acknowledged the legal risks associated with the Russian assets. The authors of the initiative emphasized that no country should bear a disproportionately large burden.
European foreign ministers plan to discuss the issue at a meeting in Ireland next week.
The debate comes as Ukraine faces urgent financial and military needs. The country requires additional air defense systems and is preparing for a difficult winter. Volodymyr Zelenskyy said that his administration faced a €23.5 billion funding shortfall, but Belgium’s position currently prevents a return to the previous model for using Russian assets.