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This article has been translated by Artificial Intelligence (AI). The news agency is not responsible for the content of the translated article. The original was published by Belga.

Blocked Russian assets: European leaders recognize risk for Belgium

by AI | 17.Oct 2024 | Europe in brief AI

The heads of state and government leaders of the European Union have given Belgium assurances at a summit in Brussels about the financial and legal risks that our country could face by using the windfall profits on blocked Russian assets.

Ukrainian President Volodymyr Zelensky talks with Belgian Prime Minister Alexander De Croo and Defense Minister Ludivine Dedonder (photo EFE/ Olivier Hoslet)

The European leaders will aim to ensure “fair distribution and solidarity” with those member states that are particularly exposed to financial and legal risks, according to the conclusions of the summit on the new European loan to Ukraine.

The EU wants to provide Ukraine with a new loan of up to 35 billion euros. That money would be repaid with the excess profits on the approximately 210 billion euros in assets of the Russian central bank that have been frozen since the Russian invasion of Ukraine. These excess profits are estimated at around 4 to 5 billion euros per year.

The matter is particularly relevant to Belgium as the majority of the Russian assets are parked at the financial institution Euroclear in Brussels. Our country was closely involved in the development of the plan and insisted on a European legal basis and a mutualization of risks.

In any case, it is taken into account that Russia will not simply tolerate the excess profits on its frozen assets being used to strengthen Ukraine. The Russian assets themselves remain untouched for the time being, but the leaders have once again confirmed that they will remain frozen until the war is over and Russia has compensated Ukraine for the damage.