Kowal: Belgium backs using frozen Russian assets but wants legal safeguards

Belgium is not against using Russia’s frozen assets to support Ukraine but wants solid legal guarantees before taking that step, said UWC Executive Committee member Zenon Kowal in an interview with Tsybulko Talk.

Kowal, who also advises the European Congress of Ukrainians and the Association of Ukrainians in Belgium, noted that Prime Minister Bart De Wever supports the idea in principle. However, because the assets are held at the Euroclear depository in Brussels, Belgium would carry direct responsibility if the EU makes such a decision.

“Prime Minister De Wever wants more than verbal promises, he needs clear legal safeguards,” Kowal said.

At the Oct. 23 EU summit, Belgium held back a decision to release €140 billion belonging to Russia’s central bank and stored in Euroclear Brussels.

“This is a tough issue for Belgium,” Kowal added. “The country must cut its budget by €10 billion ($11,367) this year while also raising defense spending to meet NATO targets.”

The Belgian leader has proposed that all EU countries that hold Russian funds share the responsibility equally, to make the move fair and credible.

Kowal said that €140 billion ($162,942) represents about 22 percent of Belgium’s yearly economic output. If Russia were to win any legal challenges, Belgium could be forced to cover the funds itself.

“A collective EU decision with clear legal obligations is necessary,” he said. “These funds are like a plane in the air: while it’s flying, there’s no problem, but if it crashes, you have to rescue everything.”

The decision on the €140 billion has been postponed until the next EU summit that is scheduled for Dec. 9.