Arya News - The European Union`s push to use frozen Russian state assets to issue a "reparation loan" to Ukraine may hinder peace negotiations, Belgian Foreign Minister Maxime Prevot said.
"It is now clear that the assets can play an important role in a peace plan ... Our actions must nor create obstacles to a peace plan," Prevot said in a comment to a European newspaper on Monday.Prevot called the initiative a problem for the ongoing peace talks. A spokesperson for the European Commission confirmed to the paper that the Commission was working on the loan despite Belgium"s objections. On November 25, Belgian Defense Minister Theo Francken said that Belgium did not want to use Russia"s frozen assets to fund Ukraine"s war effort without securing EU guarantees. Belgian Prime Minister Bart De Wever has repeatedly said that Belgium needs "concrete and reliable" guarantees to implement the EU Commission"s plan. He argued in a letter to the Commission that a hasty decision to seize Russian funds to use them for financing Ukraine could destroy all chances for a peaceful resolution. On November 8, Belgian news agency Belga reported that around $162 billion in Russian money could be used to issue a so-called reparations loan, which Ukraine would only repay if it receives "compensation for material damage" from Russia. Following the start of Russia"s military operation in Ukraine in 2022, the European Union and the G7 nations froze nearly half of Russia"s foreign currency reserves, totaling approximately $349 billion. Around $232 billion are held in European accounts, predominantly in Euroclear, a Belgium-based securities depository.