Belgium has categorically rejected German Chancellor Friedrich Merz's proposal to use Russian assets frozen by the EU to finance Ukraine, the Belgian news agency Belga reported, quoted by BTA.
“I want to be absolutely clear on this issue. Take Putin's money and leave the risks to us? That will not happen“, Belgian Prime Minister Bart de Wever said today in New York.
Earlier, in an article for the "Financial Times" Merz proposed using frozen Russian assets to provide an interest-free loan of about 140 billion euros to Ukraine. Under Berlin's plan, the loan would have to be repaid only after Russia pays compensation for war damages.
A large part of these funds - approximately 170 billion euros - are stored in the Belgian central securities depository “Euroclear“. Currently, only the interest on the blocked assets is directed to help Ukraine. However, Belgium rejects the use of the assets themselves, fearing arbitration claims and the risk of being forced to return the amounts to Moscow in the future.
In addition, the possible disposal of these funds would have a serious impact on the country's public finances. The Belgian government relies on a 25 percent corporate tax on Russian assets to finance its plans to increase military spending to 2 percent of GDP. If the EU accepts Merz's proposal, De Wever will have to look for alternative sources of revenue.
On the sidelines of the UN General Assembly, the Belgian prime minister stressed: “This will never happen“. He warned that confiscating the assets of a third-country central bank would set a dangerous precedent not only for Belgium but also for the entire EU.
“If countries see that a central bank's money can disappear with a political decision, they may decide to withdraw their reserves from the eurozone“, De Wever explained.
He also expressed regret for Merz's public statement. “I told everyone: I would be happy to talk. But let's first discuss and figure something out together, instead of making public statements“, the Belgian prime minister added.