BRUSSELS — Belgian Prime Minister Bart De Wever expressed strong concerns regarding the potential seizure of nearly €200 billion in frozen Russian assets, labeling such an action as “an act of war.” His remarks came during a press conference following a recent gathering of EU leaders in Brussels, where he highlighted the significant risks involved for the global financial system.
Potential repercussions of asset seizure
De Wever cautioned that the confiscation of these assets could not only destabilize the entire financial world but also provoke retaliation from Moscow. His comments are particularly noteworthy as several European nations, including France, the U.K., and Spain, are increasingly considering the idea of reclaiming Russian-held funds that were immobilized after President Vladimir Putin initiated a full-scale invasion of Ukraine in February 2022. These nations propose utilizing the seized funds to enhance Ukraine’s defense capabilities and improve its bargaining position in negotiations with Russia.
Concerns over legal implications for Euroclear
Belgium’s apprehensions are heightened due to its significant connection to Euroclear, the financial institution responsible for managing the majority of these frozen assets in Europe, which is located in Brussels. The Belgian government fears that transferring these funds to Ukraine could expose Euroclear to additional legal challenges from asset holders. Currently, Euroclear is engaged in litigation with various parties, as some are resorting to Russia’s politicized courts to contest the withholding of their assets and seek compensation.
“We’re not living in a world of fantasy. We’re in the real world, where if you take €200 billion from somebody there will be consequences,”
De Wever stated, emphasizing the gravity of the situation. In a related development, last year, G7 nations agreed to utilize the profits generated from these assets — rather than the assets themselves — to facilitate a €50 billion loan to Ukraine. However, there is a growing push from various countries to escalate the response. Recently, French lawmakers supported a nonbinding resolution advocating for the EU to seize these assets for the benefit of Ukraine.
Moreover, Spanish Prime Minister Pedro Sánchez has privately endorsed this approach during discussions among EU leaders, as reported by multiple EU diplomats. De Wever urged caution among his peers, advising against portraying the frozen and immobilized assets as “Putin’s little piggy bank that you can just break with a hammer and then take the money out and spend it on whatever you want … because it’s just not that simple.”