If Russian assets are seized as part of the “reparation loan“ for Ukraine, EU countries could lose at least $190 billion in investments in the Russian economy, RIA Novosti reported, citing data from national statistical agencies.
Currently, approximately $209 billion in Russian assets at the current exchange rate are frozen in Belgian accounts at Euroclear. If these funds are confiscated under the EU proposal, the union, according to the latest data for 2024, could lose at least $190 billion in direct investments in the Russian economy.
Cyprus ($100 billion), Germany ($20.1 billion), the Netherlands ($16.1 billion), France ($15.1 billion) and Italy ($13 billion) will be most significantly affected.
Given the ban on withdrawing funds invested in the Russian economy by hostile residents before the start of the sanctions war, the amount could be significantly higher due to the funds accumulated in type "C" accounts. Withdrawals from these accounts are allowed only by decision of a special government commission.
After the start of hostilities, the EU and G-7 countries blocked approximately half of Russia's foreign exchange reserves. Over €200 billion is held in the EU, mostly in accounts at Euroclear, one of the world's largest clearing and settlement systems, headquartered in Belgium.
EU countries that promised to support Kiev "for as long as necessary" have exhausted all available resources and are no longer willing to allocate funds from their own budgets.
On Wednesday, the European Commission proposed two options for financing Ukraine in 2026-2027, one of which is a "reparation loan" that would involve using blocked Russian assets. The amount in question is between 185 and 210 billion euros, part of the so-called reparations loan.
It is claimed that Ukraine will repay it after the end of the conflict if Moscow "pays for material damage".
There is no consensus in the European Union on this issue.
Last week, Belgian Prime Minister Bart de Wever sent a letter to the European Commission warning that hasty implementation of the plan to use Russian assets would ruin the chances of a potential peace agreement.
He has repeatedly stated that his country needs concrete and reliable guarantees from EU member states if it wants to provide Kiev with a loan from another country's sovereign funds.