Using frozen Russian assets for Ukraine loan "will never happen", says De Wever
Belgian prime minister Bart De Wever on Friday firmly rejected a proposal by German chancellor Friedrich Merz to use frozen Russian central-bank assets to finance a large loan for Ukraine. “Taking Putin’s money and leaving the risks with us. That’s not going to happen, let me be very clear about that,” De Wever said in New York.
In an opinion piece in the Financial Times published on Friday, Merz had suggested using frozen Russian assets to offer Ukraine an interest-free loan of around 140 billion euros. The loan would only have to be repaid only once Russia compensates Ukraine for war damage.
The majority of those frozen assets - about 170 billion euros - are held at Euroclear in Brussels. Currently, only the interest on those blocked assets is being used to support Ukraine. But Belgium has rejected using the assets themselves, for fear it could face arbitration claims and might one day be forced to return them.
Loaning the frozen Russian funds to Ukraine would also weigh heavily on Belgium’s public finances. The government is counting on the 25 percent corporate tax on Russia's assets to help fund its pledge to raise defence spending to 2 percent of GDP. If the EU were to endorse Merz’s plan, De Wever would be forced to look for alternative sources of revenue.
Dangerous precedent
On the sidelines of the UN General Assembly, De Wever said that "will never happen". He argued that seizing central-bank assets of a third country would set a dangerous precedent. Not only for Belgium, but for the EU as a whole.
"If countries see that central bank money can disappear if European politicians see fit, they might decide to withdraw their reserves from the eurozone."
De Wever added he regrets Merz' public statement. "I told everyone: I am happy to speak. But let's talk and come up with something, rather than sharing an opinion every day. I find that quite frustrating."
© BELGA PHOTO TONY BEHAR
Related news
