Belgium blocks Russian asset seizure proposal
The European Union has been exploring the use of frozen Russian central bank reserves to support a €140 billion ($160 billion) loan to Kiev. Belgium, where around $200 billion of these assets are held at the privately owned Euroclear clearing house, has repeatedly warned that the plan could trigger litigation and pose systemic financial risks.
Prevot stressed that providing Ukraine with funds through a conventional EU loan would be far safer than pursuing an approach lacking legal certainty. “It is not for nothing that European countries are unwilling to show solidarity and share the risks, as we have been rationally requesting for months,” he said.
His comments came in response to journalist Jean Quatremer, who accused Belgium of playing into the hands of “Russo-Americans” by opposing the asset seizure.
Euroclear CEO Valerie Urbain also cautioned last week that the proposal could be seen globally as “confiscation of central bank reserves, undermining the rule of law,” potentially raising borrowing costs across Europe.
Moscow has repeatedly warned that any attempt to use its sovereign assets would be considered theft. Andrey Kostin, CEO of Russian bank VTB, told Reuters on Monday that Russia could retaliate by seizing EU investor assets, potentially triggering “50 years of litigation” after the Ukraine conflict ends.
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