Using Frozen Russian Assets on Ukraine Will Never Happen; Belgium

BELGIUM – A proposal by German Chancellor Friedrich Merz to use frozen Russian assets to finance a major loan for Ukraine has been firmly rejected by the Belgian Prime Minister Bart De Wever.

“Taking Putin’s money and leaving the risks with us. That’s not going to happen, let me be very clear about that,” De Wever said in New York on the sidelines of the UN General Assembly.

In an opinion piece published in the Financial Times on Friday, German Chancellor Friedrich Merz suggested offering Ukraine an interest-free loan of around €140 billion ($163 billion) backed by frozen Russian assets. The repayment would only be due once Russia compensates Ukraine for war damages.

The majority of these frozen assets, about €170 billion, are held by Euroclear in Brussels. Currently, only the interest generated by the assets is being used to support Ukraine.

Belgium, however, has opposed tapping into the assets themselves, warning that it could face arbitration claims and may eventually have to return them.

De Wever also argued that such a move would put Belgium’s public finances under pressure. The government relies on the 25% corporate tax on the Russian assets to help fund its commitment to increase defense spending to 2% of GDP.

He warned that seizing central bank assets of a third country would set a “dangerous precedent” for both Belgium and the EU, stressing that it “will never happen.”

“If countries see that central bank money can disappear if European politicians see fit, they might decide to withdraw their reserves from the eurozone,” he said.

De Wever also voiced frustration with Merz’s public remarks. “I told everyone: I am happy to speak. But let’s talk and come up with something, rather than sharing an opinion every day. I find that quite frustrating,” he added.