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Belgium proposes plan to unlock Russian assets for Ukraine - FT

Belgium proposes plan to unlock Russian assets for Ukraine - FT Photo: Belgian Prime Minister Alexander De Croo (Getty Images)

Belgium has presented a plan to the G7 countries that could potentially unlock frozen Russian assets in Europe, aiming to utilize them for the benefit of Ukraine, reports Financial Times.

As reported, the Belgian government has initiated the issuance of debt obligations to raise funds for Ukraine's reconstruction. Russian assets will be utilized to repay the debt.

According to the Financial Times, Ukraine's allies will demand Russia to fulfill its debt obligations, but if Moscow refuses, partners will tap into the frozen Russian assets. This approach aims to navigate certain legal hurdles for the confiscation of Russian funds.

"One of the things that this would do is put off the question of what happens to the Russian sovereign assets, even though they would be used as collateral," said one of the interlocutors of the publication, informed about this topic.

According to another source involved in the negotiations between the US and the EU regarding Russian assets, Belgium's proposal is described as an "attempt to find a compromise between different viewpoints around the table, both within the EU and . . . the G7."

Confiscation of Russian assets

Recently, EU envoys reached an agreement on using the proceeds from frozen Russian assets to aid Ukraine. It was also reported that diplomats allowed the transfer of income from Russian assets to a separate account.

In late 2023, the Western press reported that the United States proposed the G7 countries to confiscate frozen Russian assets totaling $300 billion for the benefit of Ukraine. The initiative aimed to be approved by February 24, 2024.

Ukrainian Foreign Minister Dmytro Kuleba expressed confidence that the EU would indeed make a decision regarding Russian assets this year.