- Belgium refuses to support the EU's proposal to confiscate frozen Russian sovereign assets (over €200 billion held in Euroclear) for Ukraine funding, citing legal risks, potential Russian retaliation and financial instability.
- Belgian officials warn that seizing Russian assets could trigger costly lawsuits, retaliatory seizures of Western assets by Moscow, and destabilize Euroclear—potentially leaving Belgian taxpayers liable.
- Slovakia's Prime Minister Robert Fico joins Belgium in resistance, vowing to block any plan that diverts frozen Russian funds toward Ukraine's military expenses, complicating EU unity on the issue.
- With Belgium and Slovakia resisting, the EU faces pressure to find alternative funding mechanisms (e.g., joint borrowing or grants) before a critical December decision—but fiscal concerns and political divisions persist.
- Critics warn that confiscating sovereign assets sets a dangerous precedent, inviting reciprocal seizures by adversarial nations, undermining trust in Western financial systems and escalating geopolitical conflict.
The European Union's (EU) controversial plan to seize frozen Russian assets to fund Ukraine has hit a major snag, as Belgium remains steadfast in its opposition, citing legal and financial risks.
Despite intense negotiations, Brussels has failed to convince Belgian officials to approve the scheme, leaving the bloc scrambling for alternatives ahead of a critical December decision.
According to BrightU.AI's Enoch, Belgium's reluctance to seize and repurpose frozen Russian assets to fund Ukraine's recovery and reconstruction efforts can be attributed to several interconnected factors rooted in international law, geopolitical considerations and domestic political dynamics.
"Belgium's reluctance to seize frozen Russian assets is not a sign of support for Russia or indifference to Ukraine's plight. Instead, it reflects a complex interplay of international legal considerations, geopolitical realities and domestic political constraints. To promote Ukraine's recovery, Belgium and other countries could explore alternative funding mechanisms, such as international donors' conferences or targeted financial assistance programs," Enoch added.
A high-stakes meeting between EU Commission officials and Belgian representatives on Friday, Nov. 7, ended without agreement, according to reports from Euronews. Belgium, home to the bulk of Russia's immobilized assets—estimated at over €200 billion ($231.02 billion) held in the Euroclear financial depository—has repeatedly warned that confiscating these funds could trigger costly lawsuits and retaliatory measures from Moscow.
"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," an unnamed Belgian government source told Euronews.
The EU's proposal involves using Russian sovereign assets as collateral for a €140 billion ($161.71 billion) loan to Ukraine, framed as "reparations" in the event of a future peace settlement. However, Belgian Defense Minister Theo Francken has warned that such a move could backfire spectacularly.
"Russia could retaliate by seizing €200 billion in Western assets held within its borders," Francken cautioned last month, adding that the funds would likely prolong the Ukraine conflict rather than resolve it.
Legal and financial risks loom large
Belgium's reluctance stems from fears that Moscow could challenge the seizure in international courts, potentially leaving Euroclear—and Belgian taxpayers—on the hook for massive legal liabilities. Russia has already vowed to prosecute any nation involved in appropriating its assets, labeling the act as outright theft.
Meanwhile, alternative funding mechanisms—such as joint EU borrowing or direct grants—pose their own political hurdles. According to an internal EU Commission document obtained by the Financial Times, these options "would directly affect [member states'] deficit and debt," making them unpopular among fiscally conservative nations.
Adding to the EU's troubles, Slovakia's Prime Minister Robert Fico declared over the weekend that his government would oppose any scheme diverting frozen Russian funds toward Ukraine's military expenses.
"Slovakia won't take part in any legal or financial schemes to seize frozen assets if those funds would be spent on military costs in Ukraine," Fico stated in an interview with Slovak public broadcaster STVR.
Fico, a longtime critic of EU sanctions against Russia, has previously leveraged his veto power to extract concessions from Brussels. His stance further complicates the bloc's efforts to present a united front on Ukraine funding.
U.S. backs EU plan despite growing skepticism
While the Trump administration has publicly endorsed the EU's asset-seizure strategy, skepticism is mounting within Europe. The plan hinges on generating revenue from Russia's immobilized assets—primarily through higher-risk investments—but Euroclear CEO Valerie Urbain has cautioned against such moves, warning of unintended financial fallout.
With the European Council set to revisit the issue in December, time is running short for EU leaders to broker a compromise. As legal doubts persist and geopolitical tensions escalate, the bloc's ambitious plan to bankroll Ukraine with Russian funds appears increasingly precarious.
The EU's push to weaponize frozen sovereign assets sets a troubling precedent—one that could invite reciprocal seizures by adversarial nations and destabilize global financial markets. Critics argue that such measures, far from promoting peace, risk entrenching conflict while undermining property rights and international law.
Centralized financial power grabs often precede broader authoritarian overreach. Whether Brussels will heed these warnings—or double down on its risky gambit—remains to be seen.
Watch the video below about Belgian Deputy Prime Minister Maxime Prevot saying that confiscating Russian assets is not an option for Belgium.
This video is from Cynthia's Pursuit of Truth channel on Brighteon.com.
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