Russia’s frozen state assets in the EU are better suited as a bargaining chip to achieve peace in Ukraine instead of financing a €165 billion reparations loan for Kyiv, according to the chief executive of Euroclear.
“At this stage, it would be better to use that money for peace negotiations, rather than setting up an extremely complex and risky legal structure and then losing that leverage in the talks,” Valérie Urbain told Belgian broadcaster VRT on Friday.
Urbain’s comments follow the European Commission’s proposed reparations loan on Wednesday, two weeks ahead of an EU leaders’ summit in Brussels. Ukraine’s war chest is expected to run dry in April, and leaders must decide whether to use sanctioned Kremlin cash to ensure Kyiv’s survival or support the war effort with taxpayer money.
U.S. envoy Steve Witkoff suggested that the same assets instead be used for American-led reconstruction efforts once a truce has been agreed.
The U.S. would take “50 percent” of the profit from this activity, according to an initial 28-point peace plan, which was heavily criticized by Europeans for favoring Moscow and subsequently replaced by a rehashed plan — which doesn’t appear to be gaining any traction with the Kremlin anyway.
The Belgian government, led by Flemish nationalist Bart De Wever, fears the reparations loan could trigger Russian retaliation. De Wever is demanding that EU capitals provide financial guarantees that can pay out at a moment’s notice in case Moscow manages to claw the funds back.
Euroclear, the Brussels-based depository, also has a direct stake in the negotiations as it holds the lion’s share of the frozen Russian assets. The financial risks of linking the assets to the reparations loan are too big, Urbain added. Euroclear’s possible bankruptcy from the initiative would “affect the attractiveness of the European market” and impact the global financial market.
The Commission has said that the proposals address most of Belgium’s and Euroclear’s concerns. De Wever isn’t convinced. Commission President Ursula von der Leyen and German Chancellor Friedrich Merz are meeting with the Belgian premier this evening to try bring him on board.
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