Belgium to Use Frozen Russian Assets to Finance Weapons for Ukraine

Belgium is ready to utilize the €1.7 billion received from frozen Russian assets to support Ukraine’s defense needs, as announced by Ukrainian Prime Minister Denys Shmyhal.

According to the official statement, the Ukrainian government is prepared to finance defense contracts using the profits obtained from the frozen Russian assets in Belgium.

Shmyhal stated, “Belgium has declared that it has received €1.7 billion in revenue from Russian assets. Part of these funds were allocated to support Ukrainian refugees in the EU. Belgium is partially ready to finance Ukraine’s needs, including defense.”

As of today, approximately €300 billion worth of Russian assets have been frozen under international sanctions, with the majority located in the European Union. The bulk of Russia’s assets consists of securities and investments, with almost €200 billion managed by the Belgian financial company Euroclear.

Currently, there is no established mechanism for the direct transfer of these assets to Ukraine. However, Belgium has imposed a 25% income tax on them, with the proceeds being used to finance Ukrainian refugees, amounting to about €1.7 billion.

Shmyhal further conveyed that Belgium is open to exploring, in collaboration with its partners, the possibility of confiscating Russian assets and transferring them to Ukraine. The details of these mechanisms are expected to be developed throughout the year.

Regarding military assistance, Belgian Defense Minister Ludivine Dedonder recently announced that Belgium would join a coalition to procure artillery shells discovered by the Czech Republic in an unnamed country. Belgium has earmarked €200 million for this initiative, enabling the purchase of approximately 50,000 artillery shells for Ukraine.

Additionally, in 2024, Belgium plans to provide Ukraine with €611 million in military aid and support the modernization of Ukrainian Defense Forces.

Belgium is also actively involved in the training of Ukrainian pilots on F-16s.