EC, Belgium top brass to gather for talks on frozen Russian assets

Top officials from the European Commission (EC) and the Belgian government are set to meet on November 7 to seek a breakthrough in the ongoing impasse over how to use frozen Russian state assets, POLITICO reported, citing two senior EU officials.

The talks aim to explore mechanisms to leverage the frozen funds to issue a €140 billion reparations loan to Ukraine. The high-level meeting follows failed negotiations among EU deputy finance ministers on November 4, during which the Commission warned that time was running out to secure a deal.

Without agreement on the use of Russian assets, Brussels has cautioned that EU governments may need to support Kyiv directly from their national budgets — an increasingly unpopular prospect amid economic pressures following the pandemic.

According to POLITICO, the European Commission plans to present Belgium with a memo outlining alternative funding options involving EU borrowing. Belgium, however, remains hesitant, as most of the frozen Russian funds are held by Brussels-based Euroclear. Nevertheless, Prime Minister Bart De Wever could agree to the confiscation plan if convinced that there are no other “viable options.”

Belgian officials have also demanded financial guarantees in case Russia ends the war and reclaims its assets, or if Moscow successfully challenges the move in court.

The European Commission insists that Ukraine would only begin repaying the €140 billion loan once Russia halts its war and provides reparations.

By Khagan Isayev