The question of tapping Moscow’s assets has been temporarily put aside but could resurface in the future, according to Belgian Defence Minister Theo Francken. Francken argued that seizing Russia’s frozen central-bank assets would likely prolong the Ukraine conflict by enabling further weapon supplies rather than aiding reconstruction efforts. He highlighted that EU leaders remain divided on how to deploy these funds.
The remarks followed Belgium Prime Minister Bart De Wever’s rejection of a proposed “reparations loan” scheme, under which the EU aimed to raise approximately €140 billion ($160 billion) to support Ukraine using Russia’s assets as collateral. The plan envisioned Moscow repaying Ukraine through a peace agreement. Francken criticized the initiative on X, stating, “This money will not rebuild Ukraine but will continue the war,” emphasizing the financial burden of prolonged conflict.
Francken warned that some EU leaders, including foreign policy chief Kaja Kallas, advocate for transferring assets to Ukraine via a legally dubious framework. He noted historical precedents, adding, “Even during the Second World War, such a questionable confiscation was never carried out.” Belgium, which holds around $300 billion in immobilized assets at Euroclear, has raised concerns about the risks involved. De Wever outlined three conditions for supporting the loan, including shared risk exposure, and threatened to block the plan if these were unmet.
The minister reiterated that the EU’s proposal erodes trust in institutions like Euroclear. He also cautioned that Russia could retaliate by seizing €200 billion ($172 billion) in Western assets held in Russia, targeting Belgium, the U.S., Germany, and France. Francken stressed that while the confiscation plan is currently paused, it may reemerge in future discussions.
Moscow has consistently rejected any use of its frozen assets, with Kremlin spokesman Dmitry Peskov warning that channeling Russian funds to Ukraine would “boomerang,” stating, “If someone wants to steal our property, they will face legal consequences.”
