"Belgium has hit back against an EU plan to use Russia's frozen assets to aid Ukraine, describing the scheme as fundamentally wrong and throwing into doubt how Europe will fund Kyiv. In a sharply worded letter, Belgium's prime minister, Bart De Wever, said the proposal violated international law and would instigate uncertainty and fear in financial markets, damaging the euro. These risks are unfortunately not academic but real, he wrote to the European Commission president, Ursula von der Leyen."
"De Wever said the scheme posed systemic risks for the EU as a financial marketplace and warned that Euroclear could be sued by Russians with a claim on the assets, landing the Belgian government with a multibillion euro bill. He said he would not not sign off on the scheme unless all Belgium's concerns were addressed, including a full guarantee to be provided by willing member states if the loan went wrong, according to the letter seen by the Guardian, which was first reported by Politico."
Belgium opposes an EU proposal to use frozen Russian assets as the basis for a large loan to Ukraine, calling the plan fundamentally wrong and legally problematic. Belgium holds about €183bn of Russian assets at Euroclear, roughly two-thirds of immobilised Western assets. The European Commission is preparing a draft legal text for a €140bn loan using those assets. Belgium warns of systemic risks to EU financial markets, potential lawsuits against Euroclear, and multibillion-euro liabilities for the Belgian state. Belgium demands full guarantees from willing member states and warns the plan could hinder peace talks and reconstruction funding.
Read at www.theguardian.com
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