Belgian PM pushes back on UK pressure to seize frozen Russian assets
On Wednesday, Belgian prime minister Bart De Wever rejected British calls to seize frozen Russian central bank assets to support Ukraine. He warned that doing so carries serious financial and geopolitical risks.
Since Russia’s full-scale invasion of Ukraine in 2022, Russian assets held in the EU were frozen. The Belgian financial institution Euroclear holds the majority of those assets, worth around 180 billion euros. While the interest generated is being used to aid Kyiv, the assets themselves remain untouched.
Speaking on Wednesday during the Advisory Committee on European Affairs, De Wever responded to reports that the UK is pushing for the assets to be moved into an investment fund. “The British are very active, they have a lot of ideas,” he said, noting that the UK, having its own currency, faces fewer risks from such a move.
Loss of trust
De Wever cautioned that seizing the assets outright could trigger a loss of trust from third countries. They could decide to withdraw their own funds from Belgium or the EU, posing a systemic threat to the euro.
“If anyone wants to take over the assets and the risks, they can report to Euroclear tomorrow. They will happily receive them,” De Wever said. “But I haven’t seen anyone volunteer.”
“If anyone wants to take over the assets and the risks, they can report to Euroclear tomorrow"
De Wever acknowledged that confiscating the assets “sounds attractive” but is “not very realistic.” Most European countries agree. In March, 26 of the EU’s 27 countries decided to keep the assets frozen until Russia ends its war and pays reparations.
Instead, De Wever stressed the importance of preserving the current system, which uses the generated interest to help repay a 45 billion euro G7 loan to Ukraine. “It’s wiser to keep the goose that lays the golden eggs,” the Belgian prime minister said.
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