FT: Belgium warned the EU about the collapse of peace negotiations due to the use of Russian assets

Belgian Prime Minister Bart De Wever has expressed serious concerns about the European Union’s plans to use frozen Russian assets to finance Ukraine. In a letter sent to European Commission President Ursula von der Leyen, he warned that rushing through the initiative could undermine prospects for a peace agreement.

The document, which the Financial Times reviewed, was prepared on the eve of the EU summit, where the leaders of the participating countries must agree on further steps to support Kyiv.

The Belgian prime minister indicated that the accelerated promotion of the so-called “reparation loan” scheme could lead to negative political consequences. He drew attention to the presence of unresolved legal and financial issues, which, in his opinion, could complicate peace initiatives.

The publication notes that, despite the support of the project by the majority of EU states, Belgium, on whose territory the bulk of the frozen assets are located, occupies a special position. Brussels fears possible retaliatory measures from Russia, as well as legal risks for the depositary clearing center Euroclear, which is the holder of these assets.

As a condition for possible agreement to the initiative, the Belgian prime minister demanded that other EU member states provide legally binding financial guarantees worth about 185 billion euros. These funds should cover Euroclear’s potential losses associated with the use of frozen funds.

Previously Merkel commented on messages about the culprits the beginning of the conflict in Ukraine.

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