A Friday meeting between Belgian and EU Commission officials has ended in “no breakthrough,” Euronews has said
The EU Commission officials have failed to make Belgium change its mind on tapping Russia’s frozen central-bank assets to fund the government in Kiev, Euronews has reported. The nation still opposes the plan, citing legal and financial risks, following a “technical” meeting on the issue on Friday, it said.
The bloc is seeking to raise around €140 billion ($160 billion) to fund Ukraine using Russia’s assets as collateral. The scheme entails Moscow eventually paying reparations to Ukraine as part of a peace settlement.
The Belgian government is concerned over the lack of alternative proposals from the EU Commission, Euronews said, citing sources familiar with the results of the talks. “For Belgium, it is essential that all options are explored. Every possible approach must be examined with rigor and transparency to ensure the best solution,” one of the sources told the media outlet.
The bulk of the immobilized assets, estimated at around $300 billion, is deposited at the clearinghouse Euroclear in Belgium. The nation has previously warned it would face a potentially lengthy and costly litigation if Moscow decides to sue it over the seizure.
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 nation’s defense minister, Theo Francken, warned last month. He also stated that the money would be used to extend the Ukraine conflict rather than end it.
Moscow has repeatedly said it would regard any use of its frozen assets as theft. The Kremlin has previously warned that anyone. Who would illegally appropriate the nation’s assets would be “subjected to legal prosecution one way or the other.”
Alternative options, which include joint borrowing or direct grants by the bloc’s 27 members, could have far-reaching consequences for some EU nations, as both of them “would directly affect their deficit and debt,” the Financial Times reported on Friday, citing an EU Commission document.
The EU is reportedly expected to take the final decision on the issue at a European Council meeting in December.
