The question of how to use Russia’s immobilized assets has been one of the hardest for Ukraine’s allies to resolve, amid multiple layers of concern over the potential legal, political, security, and economic ramifications. The thorniest issue is that the assets are largely held in a facility in Belgium called Euroclear, which leaves the Belgians […]
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The question of how to use Russia’s immobilized assets has been one of the hardest for Ukraine’s allies to resolve, amid multiple layers of concern over the potential legal, political, security, and economic ramifications. The thorniest issue is that the assets are largely held in a facility in Belgium called Euroclear, which leaves the Belgians disproportionately exposed to the risks of retaliation by Russia.
The EU’s idea is to use the assets to facilitate a loan for Ukraine which would only need to be repaid if Russia agrees to pay war reparations to Kyiv once a peace deal is signed.
But Belgium has been hesitant to approve the plan because it is concerned about being held financially liable if Russia were to attempt to recoup the funds. This has put Belgium at odds with other EU members who are pushing for faster action to support Ukraine.
Classic Trump
On Friday, EU diplomats and officials said they feared the new Trump proposal would make it even harder to persuade Belgium to come on board. One official in an EU government said the U.S. plan was an argument against moving ahead with the reparations loan as the EU will face pressure from Trump to unfreeze the assets under a postwar settlement, leaving European taxpayers on the hook to repay Russia.
A diplomat added the notion of America seeking to profit from assets held in Europe sounded like classic Trump.
The details of the American plan are far from clear. However, the full text of the 28 points make plain that the Trump administration has designs on the frozen funds, with $100 billion to “be invested in U.S.-led efforts for Ukraine’s reconstruction and investment,” the document said. “The United States will receive 50% of the profit from this activity. Europe will add another $100 billion to increase total investment available for Ukraine’s recovery. Frozen European-held Russian funds will be unfrozen.”
