Belgium and the European Commission to hold crisis meeting

Belgium is resisting a plan proposed by the European Commission as a way to use Russian funds frozen under sanctions to support Ukraine without ultimately confiscating them, as these funds are held by the Brussels-based financial company Euroclear, Politico reports.

Prime Minister Bart De Wever fears that his government will be on the hook for paying billions to Moscow if the Kremlin's army of lawyers files a lawsuit over the initiative. At an EU leaders' meeting in October, De Wever demanded stronger assurances from EU leaders to protect his country from the financial and legal risks that could arise from this initiative.

Friday's meeting comes after deputy finance ministers failed to make progress in negotiations on a reparations loan on Tuesday, and the European Commission warned that time is running out.

“The longer we delay, the more difficult it will be to solve the problem. This could call into question some possible interim solutions,” said European Commissioner for Economic Affairs Valdis Dombrovskis.

Ukraine will face a budget deficit next year if the money does not arrive by spring. Without an agreement on the use of Russian assets, the European Commission is warning EU governments that they will have to support Kyiv out of their own pockets — and there is little appetite for this after the pandemic has devastated national budgets.

“How are we going to get €140 billion from European budgets at this time of year?” asked the deputy finance minister of one country, expressing disappointment with Belgium.

The Commission will present Belgium with a memorandum on alternative financing options for Ukraine, which include borrowing within the EU. There is hope that De Wever, who also has financial constraints, will give in when he sees that there are no other viable options.

Photo: Channel 24.