Belgian FM Warns Against Confiscating Russian Assets Due to Potential Eurozone Crisis

Belgian Foreign Minister Maxime Prevot warned AFP on Friday that the seizure of Russian central bank assets frozen in the EU in response to the Ukraine conflict could severely harm Europe’s economy.

Following Russia’s invasion of Ukraine in 2022, the EU froze around 200 billion euros of Russian central bank funds, most of which are held in Euroclear, an international deposit organization based in Belgium.

Prevot stated in an interview at his Brussels office, «For Belgium, seizing Russian sovereign assets is not a feasible option.»

He added, «Such an act, driven by political motives rather than legal or judicial frameworks, could trigger a significant systemic shock in European financial markets, undermine the euro’s credibility, and lead to troubling ripple effects.»

Last year, the EU, along with G7 partners, utilized the interest accrued on these assets to support a $50 billion loan to Ukraine, which is being disbursed in installments.

However, there is pressure from several more aggressive EU nations to explore further uses of these assets, such as outright confiscation or investing them in higher-risk ventures for greater returns.

Prevot raised concerns, questioning, «Do you think all the other countries worldwide that have invested billions in European markets wouldn’t consider pulling their funds if assets could be easily seized? They might say, ‘If this can happen today, I’ll take my investments elsewhere.'»

He also dismissed the suggestion of directing the frozen funds into riskier investments to generate higher earnings, arguing that this could leave Belgium alone in the EU accountable for any resultant losses.

«We won’t take the risks for everyone while merely getting a friendly acknowledgment saying, ‘We rely on you, thanks, and if anything goes wrong, we’ll offer advice or legal assistance, but that’s it,'» Prevot remarked.

EU foreign ministers explored potential options for managing these assets during a meeting in Copenhagen last week, but resistance from Belgium and other countries like Germany indicates that significant progress is unlikely in the near future.

Diplomats noted that the European Commission would continue to investigate possible avenues in the coming months, but currently, additional actions appear improbable.

Instead, the EU is expected to concentrate on ensuring that these assets are not returned to Russia until compensation for the damage caused in Ukraine is secured.

Prevot emphasized the necessity of doing «everything within our power» to keep the funds frozen, to aid in the future reconstruction of Ukraine.

His remarks coincide with ongoing US efforts to resolve the conflict, which may make the status of these assets a pivotal issue in any negotiations.