While the objective of supporting Ukraine is unquestionable, this initiative could have far-reaching legal, financial, and reputational risks for Belgium, the European Union and its financial institutions. Major international investors —including sovereign wealth funds and central banks— are closely monitoring the developments. If they conclude that assets held at European financial institutions (like Euroclear) are no longer safe and could be confiscated, they may decide to withdraw their funds, triggering a substantial outflow of capital. 

By linking the lifting of sanctions to Russia’s possible future obligation of payment for reparations, the proposal risks being seen as confiscation of central bank reserves, undermining property rights and the rule of law. Many assets belong to private entities and international investors, raising the likelihood of legal disputes and retaliatory measures. Concerns are further amplified by the ECB’s refusal to provide a backstop, signalling doubts about the proposal’s compatibility with EU stability and governance frameworks.  

In the long term, this approach undermines confidence in Belgium and Europe as safe and stable financial environments. It might adversely impact the investment climate, increase sovereign spreads, and raise borrowing costs for all European Member States. It could also weaken future sanctions as foreign nations seek to avoid placing assets in Belgium and Europe. 

In summary, while we fully support efforts to assist Ukraine, we urge European policymakers to take the Belgian position seriously and to explore alternative financing solutions that uphold the EU’s legal integrity, financial stability, and global credibility. We also call on all economic stakeholders in Belgium to express their support for the Belgian government’s efforts to safeguard the country’s economic stability. We must preserve international trust in European and Belgian financial institutions and safeguard Belgium’s future stability.