It makes for a slightly unlikely clash but Belgium and the EU are, currently at least, at loggerheads.
Belgium, that erstwhile member of the Union, one that prides itself of its loyalty to the bloc, has found itself at the centre of a row.
Or, to be more precise, it is the financial institution Euroclear, the Brussels-based securities depository (one of the world’s largest) that has become the world’s largest holder of frozen Russian central bank reserves, that is the subject of some angst.
Euroclear plays a crucial but largely invisible role in global finance by holding and settling transactions in bonds, equities and other securities for banks and governments.
Financial aid for Ukraine
No less than €180 billion in frozen Russian assets are dispersed across the European Union.
EU leaders have agreed to help support Ukraine’s “financial needs” for the next two years with the idea being to use frozen Russian cash to help fund Ukraine’s defence.
The EU plan would be to deploy €140 billion (£122bn) of these assets as a zero-interest “reparations loan” to Ukraine, providing Ukraine with urgently needed resources.
The urgency of this initiative has intensified as Ukraine faces mounting fiscal challenges and uncertainty about continued American support under President Donald Trump’s somewhat unpredictable foreign policy stance.
Not all are in agreement
But the EU proposal has not yet been accepted by all EU member countries and this includes Belgium. It is not alone: Spain is also cautious about issuing a reparations loan to Ukraine using its own frozen Russian assets while even the European Central Bank fears that using Russian assets could undermine the global credibility of the euro.
The EU’s so called big three in the G7 — Germany, France and Italy — are urging the U.S. (and Japan) to use such assets to help Ukraine but the White House is, in turn, pressuring the EU to make use of its stock of Russian central bank reserves. The U.S has yet to say whether it will do the same (as the EU) with the some $7 billion it holds domestically.
Whatever the Americans do or don’t do, the fact remains, though, that most of Russia’s frozen assets reside in the EU.
Belgium reluctance
A decision to use Russian assets held in the Belgian-based clearing house has now been deferred until December after concerns were raised by Belgium which is said to be nervous about having to shoulder any potential consequences should Russia legally challenge Euroclear. It argues any potential litigation could ultimately create a major financial crisis and Belgian Prime Minister Bart De Wever says Belgium needs concrete and solid guarantees before supporting the plan, pointing out that it was “unchartered territory”.
He asks: “Can this [plan] be legal? That is a very good question. There are no clear answers. We will in any case be buried in litigation. That seems like a certainty.”
The aim now is for EU leaders to resolve remaining concerns at a summit in December.
But politicians contacted by this site have lined up to urge any countries that may still be wavering in their support of the EU plan to get behind it “as a priority” while, at the same time, arguing the need for “solidarity”.
A call for EU action
David McAllister, Chairman of the European Parliament’s influential Foreign Affairs Committee, said, “The debate over the use of frozen Russian assets touches on a crucial balance between political determination, legal soundness, and financial stability. What matters now is maintaining unity and credibility within the European Union.”
The German MEP added, “As long as a full confiscation of Russian assets is not legally possible, all legitimate proceeds and innovative mechanisms should be directed toward Ukraine’s recovery and resilience. Europe must demonstrate that accountability and solidarity can go hand in hand.”
Former Labour government minister Denis MacShane, a former Europe Minister under Tony Blair, went further, stating, “Belgium under its Flemish nationalist Prime Minister should stop being Putin’s little helper and work constructively with the Commission and European leaders to send frozen Russian money in Euroclear to Kyiv. Bigger European nations would work to ensure Belgium is indemnified but with the privilege of hosting Euroclear comes responsibilities to defend European democracy against Russian aggression.”
“Putin is a thug”
Further comment comes from former British MEP Edward McMillan-Scott who was one of the last and longest serving UK Vice-Presidents of the European Parliament and a frequent and critical visitor to Russia in his capacity as the MEP responsible for the democracy and human rights portfolio.
He has called on all NATO member states to release frozen Russian funds to Ukraine.
McMillan-Scott, who is one of nine UK politicians on Vladimir Putin’s visa blacklist in 2009 (which the Briton described as a “badge of honour”), said, “Putin is a thug and a danger to mankind. Every NATO member must sign up to sending critical aid funds to Ukraine as a priority.”
A long time coming
Danuta Hubner is a senior centre-right Polish politician and former EU commissioner who also told this site that “European efforts to find a legally healthy and resilient way to use the immobilised Russia’s money to help Ukraine to recover from the aggression have been underway for more than two years.”
She adds, “So I would say that it is indeed time to support the recent idea of the “debt-claim” meaning that at the end Ukraine would transfer its debt claim against Russia to the EU and the EU would take over the assets.”
The former MEP went on, “Whatever the solution, what matters is that it should not be one member state that would bear the risk alone. We need European solidarity to cover any risks that might emerge. The real challenge now is that the number of member states ready to block the idea might expand. And, of course, it should be clear that the funds should be spent on reconstructing massive damages generated by the Russian aggression and not used for pure military purposes.”
Hubner added, “My major worry remains the potential risk to the international position of the euro which, actually, in this time of global storms should, indeed, invest in strengthening its international role.”
Setting a precedent
Elsewhere, Lithuanian MEP Petras Auštrevičius, Renew Europe spokesperson for Ukraine, emphasised the existential stakes for the continent, saying, “While Russia continues to demand Ukrainian capitulation as a condition for any negotiations, we must do everything we can to ensure that President Zelensky’s peace plan is not dismissed and that the ‘rule of the strong’ is not imposed again. Europe must play a full role in the peace negotiations because the outcome of this war will determine the future of Europe and its security architecture.”
His colleague in the EU parliament, Hilde Vautmans (Open-VLD, Belgium), a coordinator for the Foreign Affairs Committee, outlined the logic behind the EU proposal, stating, “Europe must step up its support for Ukraine to endure this war and ultimately win the war.
“Using frozen Russian assets as collateral for a joint European loan is the most responsible solution to achieve this goal. It allows us to help Ukraine in a sustainable way, while preserving the financial stability across our Union.”
The demand is clear
Another MEP, French member Nathalie Loiseau, a coordinator for the Security and Defence Committee, stressed Europe’s obligation to take concrete action.
She says, “Preparing seriously for peace in Ukraine means making Russia pay now for the war it started, by using its assets to advance Ukraine the reparations to which it is entitled. With or without Donald Trump, it means showing that Europe knows how to act and take its responsibilities.”
Instead of what she calls “flattering a war criminal” Europe must “finally use the frozen Russian assets to support Ukraine and its freedom” states German Euro deputy Marie-Agnes Strack-Zimmermann, chair of the Security and Defence Committee.
Despite such demands the harsh fact remains that, for now at least, the Russian frozen assets that Brussels wants to unlock to help Ukraine, remain out of reach.
