De Wever on confiscation of frozen assets: We are not at war with Russia, you cannot simply confiscate money
Belgian Prime Minister Bart De Wever said that the future fate of frozen Russian assets will be discussed after the war ends.
According to Censor.NET, he said this during a discussion at the Davos Forum.
Details
According to him, the funds of the Central Bank of the Russian Federation are immobilised, not frozen. Most of them are located in Belgium, specifically at Euroclear.
"You cannot simply take someone else’s money. We are not at war with Russia. Europe is not at war with Russia. You cannot simply confiscate money — that is an act of war. ...
It has never happened in history. Even during the Second World War, immobilized assets were never confiscated. Doing so now would be the first time in history, and it would have serious consequences," explained Prime Minister De Wever.
He noted that the assets would be frozen until the end of the war. When the time comes for a peace agreement, the issue of assets will be discussed.
"If it were up to me, every single euro of that money would be used for reparations and for the reconstruction of Ukraine. I would be very sad to see even one euro returned to Moscow.
That said, we must respect international law. The decision will be taken at that moment (after signing the peace agreement. - Ed.). Between now and then, Europe will finance Ukraine’s war effort, as it should," summed up the Belgian Prime Minister.
What is known about the "reparations loan" for Ukraine
- As a reminder, at a meeting in October, EU leaders postponed a decision on the use of frozen Russian assets as collateral for a so-called "reparations loan" to Ukraine in the amount of €140 billion ($163 billion). EU leaders plan to return to discussing this issue at a meeting on 18-19 December.
- Belgium, where the lion's share of these funds is held, opposed the European Commission's proposed plan to use frozen Russian assets at the meeting of EU leaders. The country fears legal and financial sanctions from Moscow and wants other EU countries to share these risks.
- Earlier, European Commission President Ursula von der Leyen proposed using frozen Russian assets as collateral for providing Ukraine with "reparation loans". Formally, Russian assets subject to sanctions will not be confiscated, but Ukraine will repay such loans only after Russia pays reparations.
- In response, Russian dictator Putin signed a decree that effectively allows for the accelerated expropriation of assets belonging to Western companies that have not yet left Russia.
- According to various estimates, the European Union's "reparation loan" to Ukraine, secured by Russian assets, could amount to €130-140 billion. Its final size will be determined after the International Monetary Fund assesses Ukraine's financing needs in 2026 and 2027.
- In total, Euroclear has accumulated more than €175 billion in cash from frozen Russian assets, which could be used to secure a new loan. But before the EU agrees to grant a reparations loan, it will want to repay the G7 loan to Ukraine of €45 billion ($50 billion) agreed last year, which was to be repaid from the proceeds of frozen Russian assets.
