EU proposal seeks to move frozen Russian assets to bypass Belgian legal risks

Sweden, the Netherlands, Spain, and Poland, supported by the Baltic states, are pushing to utilize approximately 210 billion euros in frozen Russian central bank assets to provide additional financial aid to Ukraine.

This initiative faces opposition from Belgium, which hosts the majority of these assets through the Brussels-based depository Euroclear. Belgian Foreign Minister Maxime Prévot stated that using these assets in a manner equivalent to expropriation would involve “very significant risks” and potential legal battles, noting that Euroclear is already involved in litigation in Russia.

To bypass Belgian liability, a proposal is gaining traction to transfer the custody of these sovereign assets from Euroclear to a new depository owned and controlled directly by the European Union. Ukrainian Finance Minister Sergii Marchenko has expressed support for this approach, suggesting that transferring custody to the EU could mitigate risks and resolve the current deadlock.