Sweden, the Netherlands, Poland and Spain are expected to send a joint letter to the European Commission this week calling for work to resume on using frozen assets belonging to the Central Bank of Russia to finance Ukraine.
Belgian magazine Knack reported that the initiative would reopen the debate over the future of assets frozen under EU sanctions after the Russia-Ukraine war began in February 2022.
Belgium's conditions for assets held at Euroclear
A significant portion of the Russian assets held in the EU is kept in the accounts of Euroclear, a Belgium-based financial institution. Belgian Prime Minister Bart De Wever wants the risks to be shared and EU countries to act jointly for the €185 billion frozen at Euroclear under sanctions to serve as collateral for a loan to Ukraine.
De Wever also argues that the legal basis for the arrangement must be clearly established. Belgium's conditions continue to fuel the legal and financial debate over the plan to use frozen Russian assets to finance Ukraine.
€90 billion in joint borrowing for Ukraine
After failing to persuade Belgium, EU countries decided to provide Ukraine with €90 billion through joint borrowing. At the same time, the European Commission was working on the idea of using frozen Russian assets as collateral for a loan to Ukraine.
Ukrainian President Volodymyr Zelenskyy announced this week that his country's defense budget could face a €23 billion shortfall and requested additional financial support.
Belgian Foreign Minister Maxime Prevot also reiterated last week during a visit to Kyiv that legal and financial risks arising from the use of the frozen assets must be shared among all EU countries.
