EU's Frozen Assets Dilemma: A Barrier to Peace?

Belgian Prime Minister Bart De Wever cautioned that the EU's plan to use frozen Russian assets to fund Ukraine might hinder potential peace efforts. Despite attempts, EU leaders have yet to secure Belgium's backing. The European Commission will present a proposal addressing these concerns this week.

Belgian Prime Minister Bart De Wever has issued a warning against the European Union's proposed strategy to utilize frozen Russian state assets as reparations to assist Ukraine, stating it could jeopardize peace negotiations. De Wever conveyed his concerns to European Commission President Ursula von der Leyen in a letter acquired by the Financial Times.

During a recent summit, EU leaders endeavored to hammer out a plan involving 140 billion euros in frozen Russian sovereign assets, earmarked as a potential loan for Ukraine. Despite this initiative, they failed to garner Belgium's support, which hosts a substantial portion of these assets.

The European Commission, seeking to alleviate Belgian apprehensions, is poised to unveil a draft legal proposal targeting the use of the seized assets to aid Kyiv in the years 2026 and 2027. The Commission remains hopeful that this move will address the reservations raised by the Belgian government.

(With inputs from agencies.)