Belgium Refuses to Transfer Frozen Russian Assets

Belgium has refused to transfer frozen Russian assets, a decision that has sparked renewed debate among European Union member states regarding the handling of billions of euros immobilized since Russia's full-scale invasion of Ukraine in February 2022. The assets, primarily held in Euroclear, a Brussels-based financial clearinghouse, amount to over €180 billion and represent the largest single pool of Russian central bank reserves frozen in the West.

The Belgian government has cited complex legal and diplomatic constraints for its refusal. Officials argue that any transfer or confiscation of Russian state assets must be grounded in international law and coordinated at the EU level, rather than being undertaken unilaterally. "Belgium will not act alone in transferring these assets," a senior official stated, emphasizing the need for a collective European approach and warning against measures that could undermine legal certainty or trigger retaliatory actions by Moscow.

European Disagreement and Legal Hurdles

The issue has divided EU member states. While some countries, notably Poland and the Baltic states, advocate for using the frozen assets to fund Ukraine's reconstruction, others, including Belgium, Germany, and France, caution that such moves could set a dangerous precedent and expose European financial institutions to legal challenges. Independent legal experts have warned that outright confiscation could violate property rights protected under international conventions and risk destabilizing global financial markets.

Belgium's stance is influenced by its role as host to Euroclear, which manages the bulk of the frozen Russian reserves. Euroclear has repeatedly stressed that it is bound by EU sanctions regulations and cannot transfer the assets without explicit legal authorization. The company has also faced pressure from both Ukrainian officials and Western allies to find creative solutions, such as using the interest generated by the frozen funds, rather than the principal itself, to support Ukraine.

Diplomatic Pressures and International Narratives

The refusal comes amid mounting diplomatic pressure from the United States and United Kingdom, both of which have called for more assertive action on Russian assets. However, Belgian officials remain wary of unilateral moves, pointing to the risk of Russian countermeasures, including potential asset seizures against European companies operating in Russia. Some Russian state media outlets have attempted to frame Belgium's decision as evidence of Western division and weakness, using selective quotes and misleading narratives to suggest that support for Ukraine is waning. These reports have omitted the broader context of ongoing EU negotiations and the legal complexities involved.

Belgium has also faced criticism from Ukrainian officials, who argue that the continued immobilization of Russian assets delays vital reconstruction efforts. "Every day these funds remain frozen is another day Ukraine must wait to rebuild," a Ukrainian diplomat said. Nonetheless, Belgium insists that any decision must be made collectively and in accordance with the rule of law, not under political pressure.

Looking Ahead: EU Coordination and Global Implications

The debate over frozen Russian assets is expected to intensify ahead of upcoming EU summits, where member states will seek consensus on a legal framework for asset use. Belgium has proposed that the EU focus on channeling the interest accrued on the assets, which amounts to several billion euros annually, as a compromise solution. This approach has gained traction among more cautious member states but remains contentious among those pushing for more aggressive measures.

The outcome of these negotiations will have significant implications not only for Ukraine's reconstruction but also for the integrity of the international financial system. As Belgium holds firm on its refusal to act unilaterally, the issue underscores the challenges of balancing legal norms, diplomatic interests, and the urgent needs of war-torn Ukraine.