“Our proposal is legally robust and fully in line with the EU and public international law,” he stated.
Belgium has resisted the use of sovereign Russian assets due to concerns about potentially having to repay the money to Moscow eventually. Approximately €185 billion in frozen Russian assets are managed by Euroclear, a Brussels-based financial depository, and another €25 billion is held in private EU bank accounts. Euroclear chose not to comment.
As the future of the proposed loan remains uncertain, EU ambassadors granted emergency powers to the European Commission to keep Russian state assets permanently frozen. This measure ensures the assets remain blocked until Russia pays post-war reparations to Ukraine, reducing the chances of pro-Russian nations, such as Hungary or Slovakia, returning the frozen funds to Russia. Though Russian courts have limited influence over Euroclear’s euro or dollar assets in Belgium, they can retaliate against Euroclear balances held in Russian institutions.
In 2024, the European Commission introduced a legal mechanism to compensate Euroclear for losses in Russia due to its compliance with Western sanctions, effectively countering the economic impact of Russia’s retaliation.
Giovanna Faggionato contributed to this story.
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