Belgium names requirements for using Russian assets for Ukraine loan – media

Belgium has outlined its "red lines" on the use of frozen Russian assets to finance a EUR 140 billion reparations loan to Ukraine, demanding guarantees from EU countries to jointly cover all current and future risks, the ezine Politico has reported.

According to the publication, Belgium is insisting that all 27 EU countries agree to share responsibility for possible financial or legal consequences related to the use of Russian assets frozen after the start of Russia’s full-scale invasion of Ukraine in 2022.

"These guarantees cannot be limited to the EUR 170 billion in cash that the Commission proposes to mobilize," Belgian Prime Minister Bart De Wever told EU leaders during an informal summit last week in Copenhagen, according to a statement seen by Politico.

He also stressed that "guarantees should not automatically cease after the sanctions are lifted, as arbitration proceedings could arise even years later."

Belgium, which hosts the Euroclear financial depository, which holds most of the frozen Russian state assets, fears that it will bear the main responsibility in the event of claims from Russia.

Among the conditions put forward by the Belgian government: a ban on any measures that could be regarded as confiscation; legally binding guarantees of joint and several liability of EU countries for risks to Euroclear and Belgium; and an agreement to provide immediate funds in case of need to return Russian assets, for example after a peace agreement.