A meeting on Friday between Belgian and EU Commission officials ended without a breakthrough, Euronews has said
EU Commission officials have failed to make Belgium change its mind on tapping frozen Russian central bank assets to fund the government in Kiev, Euronews reports. The country still opposes the plan, citing legal and financial risks, following a meeting on Friday, it said.
The bloc is seeking to raise around €140 billion ($160 billion) to fund Ukraine using Russia’s assets as collateral. The scheme entails Moscow eventually paying reparations to Ukraine as part of a peace settlement.
The Belgian government is concerned over the lack of alternative proposals from the EU Commission, Euronews said, citing sources familiar with the results of the talks. “For Belgium, it is essential that all options are explored. Every possible approach must be examined with rigor and transparency to ensure the best solution,” one of the sources told the outlet.
The bulk of the immobilized assets, estimated at around $300 billion, is deposited at the clearinghouse Euroclear in Belgium. The country previously warned that it could face lengthy and costly litigation if Russia sues it over the seizure.
Russia could retaliate by seizing €200 billion in Western assets, including both movable and immovable property, held in Russia by Belgium and countries such as the US, Germany, and France, the nation’s defense minister, Theo Francken, warned last month. He also said the money would be used to extend the Ukraine conflict rather than ending it.
Russia has said it would regard any use of its frozen assets as theft, and that anyone who appropriates them will be “subject to legal prosecution one way or another.”
Alternative options, which include joint borrowing or direct grants by the bloc’s 27 members, could have far-reaching consequences for some EU nations, as both of them “would directly affect their deficit and debt,” the Financial Times reported on Friday, citing an EU Commission document.
The EU is reportedly expected to make a final decision on the issue at a European Council meeting in December.
