Future of Frozen Russian Assets in EU at Risk

Belgium Calls for International Coalition to Safeguard Frozen Russian Assets Amid EU Sanctions Uncertainty

Belgian Foreign Minister Maxime Prevost called on the EU countries to create an international coalition or legal initiative that would keep Russian assets frozen even if one of the EU countries blocks the extension of sanctions. This is a preventive measure in case the EU fails to unanimously agree on further freezing of Russian funds, which became possible due to the position of Hungary, which has previously blocked joint decisions on Ukraine.

Today, the largest portion of frozen Russian assets – more than 180 billion euros – is held by the Belgian clearing company Euroclear. These assets were blocked by the EU after Russia’s full-scale invasion of Ukraine in 2022. The extension of sanctions against Russia requires the unanimous approval of all 27 EU countries every six months, and diplomatic circles fear that Hungary may use its veto in July to block the extension of these restrictions.

In this case, according to Prevost, it is necessary to have alternative mechanisms. Among the possible solutions he mentioned:

1. An international legal initiative that would allow assets to be frozen regardless of the European decision and provide a legal basis for their further use.

2. A national initiative that could be adopted by the Belgian parliament. It would provide a legal mechanism for freezing assets at the level of national legislation.

However, Prevost emphasized that none of these initiatives can be implemented by Belgium alone. Effective action requires support and coordination from other EU countries. The Minister expressed hope that in the coming weeks the EU countries will be able to agree on concrete steps in this direction.

Prevost’s call reflects growing concerns in Europe about the stability of the sanctions regime and the possible use of Russian assets to benefit Ukraine in the future.