EU plan on Russian assets could have serious economic and geopolitical consequences, - Wever
Belgian Prime Minister Bart De Wever has warned of the possible economic and geopolitical consequences of using frozen Russian assets to help Ukraine.
According to Censor.NET, this was reported by Euractiv, citing a letter from the Belgian prime minister to European Commission President Ursula von der Leyen.
Wever called the proposed scheme for using frozen Russian assets "fundamentally wrong." And, the prime minister stressed, it could put Belgium in a vulnerable position.
In a letter to von der Leyen, Wever noted that this proposal could damage the reputation of Euroclear, the Brussels-based securities depository that holds Russian assets.
"It would not be just and fair to expect that, while the advantages of such a scheme are for all, the costs and risks would be for Belgium to bear," Wever wrote.
Risks for Europe and investors
He also expressed surprise at what he called the EU leaders' "complete lack of understanding" of the legal and financial risks.
Wever said the Commission has not yet presented any draft legal text, and that an "options paper" recently shared with capitals failed to address Belgium’s concerns.
The Belgian Prime Minister suggests that this plan could prompt investors to sell EU bonds or pull funds out of Euroclear and other European institutions, "amplifying systemic risks" and potentially destabilising the euro.
Wever's demands on EU countries
In his letter, De Wever reiterated his conditions:
- EU countries must immediately and collectively provide liquidity to cover the amount held in Euroclear;
- in the event of sanctions against Moscow being lifted, share the burden of potential legal challenges;
- other Western countries holding Russian assets must commit to similar arrangements.
As an alternative, Wever proposes prioritising unspent funds from the current seven-year EU budget to cover these needs.
He also warned that rushing to implement the asset scheme could hinder peace talks between Ukraine and Russia.
