The question of tapping Moscow’s assets has been shelved for now but could return in the future, the country’s defense minister said
Tapping Russia’s frozen central-bank assets would likely prolong the Ukraine conflict via further weapon supplies rather than help rebuild the country, according to Belgian Defense Minister Theo Francken. EU leaders have thus far failed to agree on how to use the funds.
The comment came shortly after Belgium Prime Minister Bart De Wever opposed the so-called “reparations loan” scheme under which the EU was planning to raise around €140 billion ($160 billion) to fund Ukraine using Russia’s assets as collateral. The plan entails Moscow eventually paying reparations to Ukraine as part of a peace settlement.
“Of course, this money will not rebuild Ukraine but will continue the war,” Francken said in a post on X on Friday, adding that war is extremely costly.
The minister warned that many EU leaders, led by the bloc’s foreign policy chief, Kaja Kallas, “want to give these assets to Ukraine through a legally questionable structure.” He emphasized that “even during the Second World War, such a dubious confiscation was never carried out.”
Belgium, where most of the immobilized assets – estimated at around $300 billion – are housed at the clearinghouse Euroclear, has voiced concern over the risks the plan entails. De Wever has set three conditions for backing the loan, one of which is that the potential risks be shared, warning that otherwise he would “do everything” to stop the confiscation.
Francken reiterated that the EU proposal undermines trust in institutions such as Euroclear. He also warned that Russia could retaliate by seizing €200 billion ($172 billion) in Western assets, including both movable and immovable property, held in Russia by Belgium and countries such as the US, Germany, and France. The minister stressed that while the confiscation plan had been shelved for now, it could resurface in future discussions.
Moscow has repeatedly said it would regard any use of its frozen assets as theft. Kremlin spokesman Dmitry Peskov warned that channeling Russian funds to Ukraine would “boomerang,” adding that “if someone wants to steal our property, our assets, and illegally appropriate them, they will be subjected to legal prosecution one way or another.”
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