EU, US Clash With Belgium Over Frozen Russian Assets

Sharp disagreements have arisen between the European Union and the United States over Belgium's position on using Russia's frozen assets to support Ukraine. As reported by the Financial Times, the EU and the US are demanding that Brussels allow the use of Russian funds located on its territory to provide Kyiv with a so-called "reparation loan." However, Belgium's caution and its desire to avoid financial risks have become a serious obstacle to the implementation of this ambitious plan.

The essence of the conflict is as follows: after the start of the Russian invasion of Ukraine in 2022, Western countries froze about €300 billion of the Bank of Russia's assets. The lion's share of this huge sum, about €190 billion, is located in the Belgian processing center Euroclear. According to the Financial Times publication, the EU and the US insist that €140 billion of that money be used to provide a loan to Ukraine, conditionally called "reparation." This program is designed to ensure Kyiv's long-term financial stability and help in the recovery process.

However, as the FT notes, Brussels is in no hurry to agree to this initiative, putting forward its counterarguments. Belgium has demanded that other EU countries guarantee the legal and financial risks that could arise from the use of Russian assets. In essence, Belgium fears that in the future, it may have to bear the entire burden of possible lawsuits from Russia or other financial consequences alone and wants this responsibility to be shared among all EU members.

This position of Belgium is causing dissatisfaction among other European countries, who believe that Brussels is being overly cautious. They note, in particular, that some EU members have already provided significant assistance to Ukraine, which was associated with great risks. For example, Poland provided a logistics hub on its territory to send military aid to Kyiv, and Denmark provided it with F-16 fighter jets. Moreover, these countries did not demand that their EU partners share the risks associated with them. This contrast exacerbates tensions within the EU, leaving the fate of a financial package vital for Ukraine in uncertainty.