Belgium will not transfer frozen russian assets to Ukraine

Belgian Foreign Minister Maxime Prévot confirmed his country's strong opposition to the transfer of frozen russian assets, most of which are held in Belgian banks, to help Ukraine.

He said such a move would jeopardize Belgium's long-standing reputation as a financial services center.

Prévot said his government remains firmly opposed to the idea, despite European Commission President Ursula von der Leyen's statement a few days ago that the issue would be reopened.

“Frankly speaking... the confiscation of these russian sovereign assets is not really an option for Belgium,” he said.

As part of Western sanctions in response to the full-scale invasion of Ukraine in 2022, around €200 billion of russian funds remain frozen.

Most of the money is held in the Euroclear depository, which is subject to EU financial market legislation. Prevo said that breaking the rules, even in the event of an existential war, would put Belgium and the EU at risk, as financiers might reconsider investing in them in the future.

“It would send a very bad signal to other countries around the world. Some of them also have assets, sovereign assets in Brussels or elsewhere in Europe,” he said, adding that the government had ‘considered’ confiscating frozen assets and concluded that it would “undermine” confidence in the euro.

It could “create a huge negative impact, systemic consequences for confidence in European financial services,” he said.

Meanwhile, the EU and other allies of Ukraine, such as the UK, are pushing for this idea.

“We are also pushing forward with work on the use of frozen russian assets, because it is clear that the predator must pay for what it has done,” said Lajan.

An alternative plan proposed by the UK is the potential transfer of assets to a separate investment fund, an idea that Prevo also rules out.

"A possible change in the strategic investment of current assets frozen in Brussels is also not an option for Belgium, because when we analyzed these two options (seizure of assets and transfer to an investment fund – ed.), many experts highlighted the high risks – legal and financial – that this could create if we decide to confiscate the assets," he said.

“Therefore, I believe that Belgium will not take this risk,” the minister said.

Source: Euronews