There are currently two EU proposals aimed at providing Ukraine with €90bn, to cover two-thirds of its funding needs.
One is to raise the money on capital markets, backed by the EU budget as a guarantee. This is Belgium’s preferred option but it requires a unanimous vote by EU leaders and that would be difficult when Hungary and Slovakia object to funding Ukraine’s military.
That leaves loaning Ukraine cash from the Russian assets, which were originally held in securities but have now largely matured into cash. That money is Euroclear property held in the European Central Bank.
The EU’s executive, the European Commission, accepts Belgium has legitimate concerns and says it is confident it has dealt with them.
The plan is for Belgium to be protected with a guarantee covering all the €210bn of Russian assets in the EU.
Should Euroclear suffer a loss of its own assets in Russia, a Commission source explained that would be offset from assets belonging to Russia’s own clearing house which are in the EU.
If Russia went after Belgium itself, any ruling by a Russian court would not be recognised in the EU.
In a key development, EU ambassadors are expected to agree on Friday to immobilise Russia’s central bank assets held in Europe indefinitely.
Until now they have had to vote unanimously every six months to renew the freeze, which could have meant a repeated risk to Belgium.
The EU ambassadors are set to use an emergency clause under Article 122 of the EU Treaties so the assets remain frozen as long as an “immediate threat to the economic interests of the union” continues.
