Belgium may change its position on Russian assets

The Belgian government is ready to soften its stance on the use of around €190 billion in frozen Russian assets to support Ukraine, but it demands that the European Union share the potential legal risks.

According to Belgian Foreign Minister Maxime Prévot, any new initiatives must have a strong legal basis and involve collective responsibility from all EU member states. This is because the bulk of Russian assets is held in the Belgian depository Euroclear, and Belgium is not prepared to bear the legal risks alone in case of lawsuits.

“If new initiatives are to be adopted, we must ensure they are legally sound and that the risks are pooled,” Prévot added.

The EU is discussing the idea of creating a special-purpose entity to which Russian assets would be transferred and then invested in more profitable instruments.

However, even this option is drawing criticism. Euroclear CEO Valérie Urbain warned that Moscow would see such a move as expropriation, potentially triggering an aggressive response and undermining the depository’s position.

“Belgium is not ruling out revisiting its position. If we have a strong legal foundation, if the financial risk is mitigated, and if the risks are shared. That’s a lot of ‘ifs’,” said Prévot.

At the same time, the minister emphasized that asset confiscation is not being considered. According to him, there is no legal basis for such a move, and it could raise concerns among countries whose sovereign funds are held in Europe, fearing they could also be at risk of politically motivated seizures in the future.

Prévot added that the frozen Russian assets could later become a bargaining tool in peace negotiations and be used for Ukraine’s reconstruction.

Source: Channel 24, Financial Times