Russia warns Belgium over use of frozen Russian assets

On Tuesday, state news agency Tass reported that Russia had issued a warning to Belgium regarding any attempt to use frozen Russian assets held at Euroclear in Brussels.

In a statement circulated by the agency, Russia’s Foreign Intelligence Service (SVR) said that Moscow would take legal action against Belgium if the blocked assets were used to support Ukraine.

"Because of the conflict in Ukraine and the desire to bring about Russia’s defeat, European Union countries are teetering on the brink of a socio-economic crisis, with exhausted budgets," Tass quoted the agency as saying. "It would be convenient to pay for Ukrainian grain with stolen Russian assets. But for now, those are not yet up for division," the SVR added.

The agency noted that Belgium had so far resisted seizing the funds for fear of litigation. "And rightly so," the statement continued. "It will certainly face legal action, the consequences of which will be impossible to ignore."

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The timing of the warning is seen as deliberate. EU finance ministers are due to meet on Thursday to discuss continued financial support for Ukraine, with the question of frozen Russian assets high on the agenda.

For months, European policymakers have been exploring ways to channel the roughly 200 billion euros in Russian assets frozen at the Brussels-based clearing house Euroclear towards Ukraine’s reconstruction.

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Under one proposal, Kyiv would receive up to 140 billion euros in loans backed by the expected proceeds from those assets. Once sanctions are lifted and Russia compensates Ukraine for wartime damage, the borrowed funds would, in theory, be repaid to Europe.

Blocking billions

These assets were originally frozen in 2022 following Russia’s invasion of Ukraine. In response to Moscow’s aggression, Western governments blocked billions in Russian bonds, accounts and securities.

Despite mounting pressure from its EU partners, Belgium has so far declined to endorse the plan, insisting that all member states must share the legal and financial risks, and that other countries holding Russian assets should be involved too.

Observers warn that any unilateral move to confiscate the assets could undermine confidence in Euroclear and destabilise the wider financial system.

^{© DPA}