Belgium warns that using Russian assets to finance Ukraine jeopardizes the peace agreement

Brussels, November 28 (Europe Press) –

Belgian Prime Minister Bart de Wever once again attacked the European Commission’s proposal to use frozen Russian assets to finance Ukraine, warning in a scathing letter to European Commission President Ursula von der Leyen that this would not only “violate” international law but could also hamper efforts to reach a peace deal.

Despite the Belgian criticism, the Community’s executive confirmed on Friday that it is continuing to prepare the legal basis for its proposal, which will be formally presented to the capitals “in the coming days,” according to von der Leyen’s spokeswoman, Paula Pinho, at a press conference in Brussels.

One problem that De Wever insists on is the lack of a clear legal proposal that resolves how the EU maintains that the use of frozen Russian assets is not confiscation, and gives guarantees to Belgium that the rest of the countries in the bloc will respond jointly if that country in the future has to respond to the action in court.

The Flemish extremist leader’s text, provided by the Financial Times, warns that a hasty move to resort to Russian assets could serve as “collateral damage” to “effectively prevent” the success of a final peace deal.

He also sees the proposal as a plan that “would not only violate a fundamental principle of international law, but would also create additional uncertainty in international markets,” while insisting that although Brussels denies it is an illegal expropriation, “others will see it differently and act accordingly.” For this reason, the Belgian president is calling for a syndicated loan that “would be less expensive if all subsequent risks are taken into account.”

Pinho confirmed receipt of De Wever’s letter and avoided going into detail or responding to the warning that the proposal could derail a final peace agreement, but stressed that the Commission is in close contact with all member states, including Belgium, to ensure that “all concerns” are addressed “in a satisfactory manner so that everyone feels safe and comfortable” with the solution that will finally be put forward.

Just ten days ago, von der Leyen sent governments a first document containing the keys to the three options Brussels is considering for financing Ukraine’s urgent needs over the next two years. The aim is for EU heads of state and government to finalize the agreement at a December summit, but Brussels has not yet made clear whether its proposal will require unanimity of countries or whether the support of a qualified majority will be sufficient.

In the document addressed to the leaders, the German conservative defends its idea of ​​using the liquidity obtained by Russia’s frozen sovereign assets at Euroclear – which is headquartered in Belgium, and De Viver therefore fears the consequences for her country – to finance a compensation loan of up to $140,000 million, which Kiev will only have to return if Russia, once the war is over, financially compensates Ukraine for the devastation.

Brussels’ proposal offers two alternatives: that member states grant direct bilateral aid to Ukraine, or that the European Union turns to the markets to finance 90 billion euros in aid through joint debt. Von der Leyen also cautions that the three possibilities are not exclusive and can be combined.