Belgium hits back at EU plan to use frozen Russian assets to aid Ukraine

Prime minister says proposal violates international law and would destabilise financial markets

The Belgian prime minister, Bart de Wever, delivers a speech in Brussels (Photograph: Olivier Hoslet/EPA)

De Wever said the scheme posed "systemic risks for the EU as a financial marketplace" and warned that Euroclear could be sued by Russians with a claim on the assets, landing the Belgian government with a multibillion euro bill.

He said he would not not sign off on the scheme unless all Belgium's concerns were addressed, including "a full guarantee to be provided by willing member states" if the loan went wrong, according to the letter seen by the Guardian, which was first reported by Politico.

The Flemish nationalist leader also argues that moving forward with the reparations loan plan would prevent the EU from reaching a peace deal, because the Russian assets would not be available for the reconstruction of Ukraine.

In language that will dismay many of Ukraine's EU backers, he suggested Ukraine could lose the war. "In the very probable event Russia is ultimately not officially the losing party, it will, as history has shown in other cases, be legitimately asking for its sovereign assets to be returned," De Wever said.

EU leaders failed to agree on the idea in October, but are under added pressure to finalise the plan after the White House revealed its thinking on Russia's frozen assets, which are mostly held in Europe, above all Belgium.

Press review: Russia-US leak intrigue and EU moves to grab Moscow's assets by year-end | Tass |

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