Belgium opposes EU plan to use Russian assets to support Ukraine.

(CLO) Belgium has voiced its opposition to the European Union's (EU) plan to use frozen Russian state assets to raise 140 billion euros for Ukraine.

The majority of these assets are held at Euroclear, a financial institution based in Brussels.

The European Commission has been developing plans for months to use frozen Russian assets to fund a “compensation loan,” supporting Ukraine’s financial needs for the next two years. But the plan has raised a series of legal questions, leaving Belgium concerned about the risks to the country and to Euroclear.

Before the Commission released the detailed legal documents on December 3, Belgian Foreign Minister Maxime Prevot said that the EU's proposal "did not meet Belgium's requirements." He said Belgium was "disappointed that it had not been heard," and affirmed that its concerns "had not been adequately addressed."

Illustration photo: Unsplash

Belgium put forward three demands. First, other EU countries must bear all legal costs if Russia sues the program. Second, they must commit to providing immediate financial support if the court orders reimbursement to Russia. Third, other countries also holding frozen Russian assets must transfer those funds to Ukraine, not just Belgium.

Mr. Prevot said these demands were “not insurmountable,” but noted that Belgium had not yet received full support from member states.

In addition to plans to use frozen assets, the European Commission is also considering borrowing money on financial markets, or a combination of both, to secure support for Ukraine. Borrowing could help the EU quickly provide assistance while continuing to address the legal and political complexities surrounding Russian assets.

The situation became more complicated after the US-backed 28-point peace plan proposed that some of Russia's assets could be placed in a joint US-Russia investment fund. However, many EU countries still prefer to use Russian assets directly rather than borrowing, as the loan would eventually have to be repaid.

According to the Commission's proposal, Ukraine would only have to repay its debt if Russia compensated it for wartime damages. The Commission argued that the plan was legally sound because it did not seize any sovereign Russian assets.

A European Commission spokesperson said that the commissioners would discuss financing options for Ukraine at their regular meeting and would adopt the legal proposals the following day.

Source: https://congluan.vn/bi-phan-doi-ke-hoach-eu-dung-tai-san-nga-ho-tro-ukraine-10320271.html