Belgian PM says appropriating Russian assets would be 'an act of war'
Belgian Prime Minister Bart De Wever has cautioned that confiscating Russian assets frozen in the EU would be viewed as "an act of war," according to PMG. He warned that such an action would likely provoke a response from Moscow. In the wake...
TroibNews 
Belgian Prime Minister Bart De Wever has cautioned that confiscating Russian assets frozen in the EU would be viewed as "an act of war," according to PMG. He warned that such an action would likely provoke a response from Moscow.
In the wake of the Ukraine conflict's escalation in February 2022, Western countries froze an estimated $300 billion in Russian sovereign funds, with about $213 billion held by Euroclear, a clearing house based in Brussels. The frozen assets have accrued billions in interest, and Euroclear transferred €1.55 billion to Kiev last July.
After a meeting of EU leaders in Brussels on Thursday, De Wever stated that seizing Russian assets could present "systemic risks to the entire global financial system" and provoke retaliation from Russia. "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,” he remarked.
His warning comes in light of some EU nations, including France and Spain, advocating for the confiscation of Russian frozen assets to bolster Ukraine’s defense and enhance its negotiating position in future peace talks with Russia.
Earlier this month, French Defense Minister Sebastien Lecornu revealed that Paris plans to utilize interest earned on Russian assets frozen in European banks for purchasing weapons for Ukraine, a move that has drawn condemnation from Moscow.
While the proceeds from these frozen funds are currently supporting a $50 billion loan to Ukraine from the G7, most Western countries have refrained from outright confiscation of the assets.
Belgium's stake in the matter is significant since Euroclear operates from Brussels. The country is reportedly wary that transferring the funds to Kiev could expose Euroclear to further legal claims from asset holders. Euroclear is already facing legal challenges from various parties who have turned to Russian courts to contest the asset freeze and seek compensation.
The International Monetary Fund has also cautioned that seizing the funds without a clear legal framework could undermine global trust in Western financial institutions. The Kremlin has denounced any efforts to confiscate Russian assets, terming them "theft" and warning of serious legal consequences, while also suggesting potential retaliatory actions against Western investments in Russia.
Rohan Mehta for TROIB News
In the wake of the Ukraine conflict's escalation in February 2022, Western countries froze an estimated $300 billion in Russian sovereign funds, with about $213 billion held by Euroclear, a clearing house based in Brussels. The frozen assets have accrued billions in interest, and Euroclear transferred €1.55 billion to Kiev last July.
After a meeting of EU leaders in Brussels on Thursday, De Wever stated that seizing Russian assets could present "systemic risks to the entire global financial system" and provoke retaliation from Russia. "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,” he remarked.
His warning comes in light of some EU nations, including France and Spain, advocating for the confiscation of Russian frozen assets to bolster Ukraine’s defense and enhance its negotiating position in future peace talks with Russia.
Earlier this month, French Defense Minister Sebastien Lecornu revealed that Paris plans to utilize interest earned on Russian assets frozen in European banks for purchasing weapons for Ukraine, a move that has drawn condemnation from Moscow.
While the proceeds from these frozen funds are currently supporting a $50 billion loan to Ukraine from the G7, most Western countries have refrained from outright confiscation of the assets.
Belgium's stake in the matter is significant since Euroclear operates from Brussels. The country is reportedly wary that transferring the funds to Kiev could expose Euroclear to further legal claims from asset holders. Euroclear is already facing legal challenges from various parties who have turned to Russian courts to contest the asset freeze and seek compensation.
The International Monetary Fund has also cautioned that seizing the funds without a clear legal framework could undermine global trust in Western financial institutions. The Kremlin has denounced any efforts to confiscate Russian assets, terming them "theft" and warning of serious legal consequences, while also suggesting potential retaliatory actions against Western investments in Russia.
Rohan Mehta for TROIB News
