Belgian ambassador on use of frozen Russian assets: We are not in opposition, 'reparations loan' interesting proposal

The Ambassador of the Kingdom of Belgium to Ukraine, Luc Jacobs, explained his country's position on the possible use of frozen Russian assets, stressing that Brussels "is not in opposition."

"We are not in opposition, but we are paying attention to a number of factors that are absolutely crucial if we truly want to use Russian assets in the most prudent way possible," he said at the "Money for Victory: Make Russia Pay" conference, organized by ANTS together with ICUV in Kyiv on Friday, October 17.

The ambassador emphasized that the mechanism for using these assets must be legally sound and legitimate so that "we don't cause ourselves more harm than we intend to cause the aggressor."

"We must be very careful, especially when it comes to respecting international law and the rule of law. That is precisely the principle we uphold when it comes to using these assets. We must act within the framework of the law," the diplomat explained.

Jacobs also pointed to the financial risks for countries when the assets in question are held by institutions that are private companies within the EU, not state-owned.

"The use of assets, especially their confiscation, comes with significant financial risks, as well as reputational risks for the Eurozone. Imagine if, in the future, global capital were to relocate, for instance, to Beijing, where an alternative financial system could be created," the ambassador noted.

According to him, legal and litigation risks must be shared among a broader international community, particularly the EU and the G7.

"A significant portion of these assets is located in Belgium, but we are not the only ones. If we alone were to bear the legal and litigation risks, the exposure would amount to a sum equivalent to Belgium's entire budget. That would be unsustainable for Belgium. That is why we continuously call on EU members and, more broadly, G7 members to share this risk," the ambassador reminded.

Jacobs noted that when it comes to the use or confiscation of assets, no country has yet taken such steps independently.

"We are not against it, but we want to emphasize that when we do something creative, we must do it wisely. And we are not alone in this view. This discussion is now taking place within the EU. We are preparing for the next European Council. The proposal for a reparations loan is an interesting mechanism," the ambassador said.

He added that this proposal still needs refinement, but "we are now in a phase of deep reflection, and we are working on it."