European Commission promises to protect Belgium regarding Russian assets for €140 billion loan to Ukraine - Politico
Kyiv • UNN
The European Commission has offered Belgium significant guarantees regarding a €140 billion loan to Ukraine to protect it from the legal and financial consequences of using Russian assets. EU countries are ready to assume the risks of Russian retaliation, including those arising from bilateral investment treaties.
The European Commission has proposed significant guarantees for its 140 billion euro loan to Ukraine to reassure Belgium that it will not be left alone with any legal or financial consequences of using Russian assets held on Belgian territory, Politico reports, writes UNN.
Details
In a memorandum attached to a letter to EU capitals sent on Monday morning and obtained by the publication, European Commission President Ursula von der Leyen reportedly stated that "EU countries are prepared to bear the risks of Russian retaliation in the coming years."
In another concession to Belgian Prime Minister Bart De Wever, the European Commission stated that EU countries would bear these risks "even after the immobilization of assets is lifted."
Belgium fears that using these assets could expose it to Russian lawsuits both domestically and abroad, as the sanctioned funds are held in the Brussels-based financial depository Euroclear. De Wever is demanding financial guarantees from the rest of the bloc's members to protect himself from Kremlin lawyers who might convince a court to return the money to Moscow.
This causes serious concern in Belgium, which has a bilateral investment treaty with Russia signed in 1989.
"The guarantees will also cover risks arising from bilateral investment treaties related to the immobilization of Russian sovereign assets," von der Leyen wrote.
The memorandum outlined two other funding options to consider if Russian assets are not used to finance the loan. In both cases, the EU would pay the costs out of its own pocket to support Ukraine.
Von der Leyen's letter was published after her meeting with De Wever on Friday, following weeks of negotiations between the parties on the use of Russian assets.