EU and Belgium Struggle to Resolve Dispute Over Russian Asset Utilization
EU officials and the Belgian government have been unable to resolve a deadlock regarding the proposal to use immobilized Russian assets to fund Ukraine’s reconstruction over the next two years. A technical meeting was held between the European Commission and the offices of Prime Minister Bart de Wever and Foreign Minister Maxime Prévot on Friday, but no breakthrough was achieved.
According to sources involved in the discussions, there is growing concern within the Belgian government about the lack of alternative proposals from the European Commission. The EU has been pushing for a plan that would utilize €140 billion in frozen Russian assets stored at the Belgian financial repository, Euroclear. However, the Belgian government remains hesitant due to the significant risks involved.
Legal Uncertainty and Concerns
The Belgian government highlights the legal uncertainties surrounding the post-war scenario. They are worried about potential Russian retaliation and the possibility of being held liable for unintended consequences. There is also concern that if Russia or its associates decide to sue for the assets after the war, the country could be burdened with costly legal proceedings.
The Commission is seeking ways to ensure stable funding for Ukraine through 2026 as the costs of the war continue to rise without support from the United States, which has declined since President Donald Trump took office. EU leaders agreed in October to revisit the matter and make a final decision in December after exploring alternatives. So far, these revisions have not convinced the Belgian side.
Calls for Comprehensive Options
“What we expect and was agreed at the European Council is that all possible options are worked out in detail and presented at the next Council,” a source told Euronews. “All options must be on the table,” they said.
Belgium emphasizes the importance of exploring every possible approach with rigor and transparency to ensure the best solution. “To be frank, we are still waiting for the other options that the European Commission was meant to present, as agreed at the European Council” in October, they added.
When asked if the government is frustrated by the lack of other options, the source responded, “Not yet frustrated but the clock is ticking and we remain constructive.” They stressed that the EU needs to collectively take the best decision, noting that it’s impossible to do so without considering all available options and their respective pros and cons.
Alternative Funding Solutions
If the plan fails, some options that have been floated include issuing joint debt, bilateral provisions from member states, or a short-term bridge loan. However, member states privately admit none of these alternatives would be as significant or stable as the reparations loan.
One European source expressed hope that a deal could still be reached with the Belgians, but acknowledged that time is running short until leaders meet in Brussels in December for their last European Council summit of the year.