EU blasts Belgium over excessive demands to unfreeze Russian assets — Politico
Photo: EU countries accuse Belgium of excessive demands for unfreezing Russian assets (Getty Images)
European governments accuse Belgium of excessive demands regarding the protection of frozen Russian assets in case the Kremlin files a lawsuit to recover €140 billion, Politico reports.
According to the agency, the unwillingness of governments to make concessions to Belgium could derail negotiations on the EU's plan to lend these frozen assets to Ukraine.
"We are advancing our work to meet Ukraine’s financial needs. We have made good progress, and we plan to table our legal proposals this week," says European Commission President Ursula von der Leyen.
The so-called reparations loan is causing huge controversy among EU countries, with the Belgian government, as it involves the use of frozen Russian state assets to finance Ukraine.
Amid fears of Russian retaliation, Belgian Prime Minister Bart De Wever insists that EU governments provide Belgium with financial guarantees exceeding €140 billion that can be paid out within a few days. He also wants the term of these guarantees to exceed the EU sanctions against Russia.
Although European governments are willing to guarantee a pre-agreed amount, they are reluctant to sign what they call a blank check. Four EU diplomats told Politico that they cannot accept De Wever's request because it would put their countries' financial viability at the mercy of a court decision.
To secure political support, the Commission has shown some EU ambassadors sections of its legal proposal, but the specific amount of the guarantees is being kept secret.
If no progress is made, the most likely alternative is to issue more EU debt obligations to cover Ukraine's budget deficit. But this idea is unpopular with most EU governments, as it involves using taxpayers' money.
Frozen Russian assets
Belgian Prime Minister Bart De Wever recently stated that the EU's plan to use frozen Russian assets to finance Ukraine could have serious economic and geopolitical consequences.
Incidentally, Politico recently published an article stating that Belgium's resistance may have more mundane reasons than fears of retaliation from Russia. The EU suspects that Belgium is appropriating the income from Russian assets.
At the same time, French Foreign Minister Jean-Noël Barrot said that the European Council could decide on Russia's frozen assets as early as December 18.
