Who'll Shoulder the Risk? EU's Dilemma Over Frozen Russian Assets

Belgian Prime Minister Bart De Wever has called on European Union leaders to commit to sharing the risks associated with using frozen Russian assets in Belgium to finance loans for Ukraine. The proposal, discussed at a recent EU summit in Copenhagen, seeks to employ these assets to provide financial aid to Ukraine, but faces hurdles due to international legal norms forbidding the confiscation of sovereign assets. De Wever emphasized the necessity for a collective EU commitment to mitigate potential repercussions.

European leaders have broadly backed the plan to offer Ukraine a €140 billion loan utilizing frozen Russian assets, primarily held in Belgium due to it hosting the Euroclear securities depository. However, they acknowledge the legal and financial complexities that will need resolution. The Kremlin has sharply criticized the idea, labeling it "pure theft," and signaled potential retaliation.

De Wever also voiced concerns about the security risks posed to Euroclear's management, who are currently under protection due to these tensions. In response, the EU is looking to ensure Belgium does not face these risks in isolation, with discussions underway regarding the distribution of liability among member and G7 countries. Transparency about asset holdings across Europe remains a sticking point, as there is uncertainty about the exact values and locations of these assets.

(With inputs from agencies.)