Belgium has set "red lines" on use of Russian assets, - Politico
Belgium insists on EU risk sharing in financing a €140 billion loan to Ukraine for reparations from frozen Russian assets.
According to Censor.NET, Politico writes this.
"EU capitals are racing to quell Belgium’s concerns around the loan ahead of a crucial summit of EU leaders on Oct. 23. Securing a political agreement at the summit would pave the way for the bloc to put forward a legal proposal shortly after, " the article states.
Belgium has the greatest interest in this matter among the 27 EU countries, as it is home to the Euroclear financial depository, which holds most of the Russian state assets frozen after Russia's full-scale invasion of Ukraine in February 2022. The country's authorities fear that they will have to respond to any legal and financial claims from Russia and are therefore calling on all EU countries to provide guarantees for this loan, which effectively means that taxpayers' money could be used to cover the associated costs.
"These guarantees cannot be limited to the €170 billion in cash that the Commission proposes to mobilize. The potential exposure could be much higher than the nominal amount," Belgian Prime Minister Bart De Wever told during an informal summit with EU leaders last week in Copenhagen.
He also added another condition that "the guarantees do not automatically end when sanctions are lifted," since "arbitration procedures could still emerge years later."
The red lines of Belgium
Belgium has outlined a number of "red lines," including a refusal to support any measures that could be interpreted as asset confiscation, a legal obligation and clear guarantees that European countries will share all current and future risks for Euroclear and Belgium itself, as well as an agreement on the immediate allocation of funds in the event that Euroclear is forced to return assets to Russia, for example after the conclusion of a peace agreement.
The Belgian Prime Minister noted that the European Commission's scheme is effectively confiscation, although the Commission insists that the loan does not involve the seizure of Russian state assets. He stressed that the difference between a reparations loan and confiscation is extremely small and that a prolonged freeze on assets could be considered quasi-confiscation.
De Wever also expressed concern about a possible violation of Belgium and Luxembourg's 1989 bilateral investment agreements with Russia, as well as the possibility that Chinese investors could withdraw their deposits from Euroclear for fear of potential confiscation. According to a senior EU diplomat, these issues remain complex and guarantees must be reliable.
