German Chancellor Friedrich Merz will be in Brussels today, aiming to persuade Belgian leadership to support a $165 billion euro compensation loan for Ukraine, using the value of frozen Russian state assets located on Belgian territory.
"Chancellor Friedrich Merz will travel to Belgium for a dinner meeting to privately discuss with Belgian Prime Minister Bart De Wever and European Commission President Ursula von der Leyen," a German government spokesperson said.
Merz canceled his travel plans for Oslo to travel to the EU's capital, after the Commission proposed a funding package to support Ukraine's defense against Russian forces.
Time is running out, as Kyiv's war funding is expected to be depleted in April.
Resistance from De Wever
Bart De Wever continues to oppose the initiative, as most of the Russian assets are overseen by the Belgian financial clearing company, Euroclear.
He fears that Russia will retaliate against Belgium both inside and outside its borders, and demands undisputed financial guarantees from European capitals before even considering supporting the Commission's proposal.
EU leaders plan to discuss the initiative in Brussels on December 18.
Failure to reach an agreement may force EU governments to use taxpayer money to ensure Ukraine's survival.
Nevertheless, De Wever needs to be convinced, as is very well known to Ursula von der Leyen, who had her own critical talks with the Belgian leader, which did not result in a positive outcome.
Demands and legal concerns
De Wever is not only asking for significant guarantees that could be activated immediately, but he also demands that the same rules apply to other financial institutions holding Russian state assets in the EU, such as Euroclear.
Belgians also fear that a team of Kremlin lawyers will take legal action against the government and Euroclear, based on a bilateral investment treaty the country signed with the Soviet Union in 1989.
Former Russian President Dmitry Medvedev has repeatedly threatened this possibility.
"If the mad EU steals Russian 'frozen' assets for a 'compensation loan,' we might see it as a cause for war with all the related consequences for Brussels and its partners," Medvedev wrote on social media on Thursday.
"Then, this money may need to be returned, not in court, but as real compensation to be paid in kind by Russia's collapsing enemies."
The Commission has repeatedly downplayed the legal risks perceived by the Belgians, but it will need De Wever'ssupport before proceeding with the plan.
Diplomats have already begun examining the Commission's legal text to reassure the Belgians before December 18.
"I fully understand that the Belgian government, where a large part of the frozen assets are located, cannot rely only on political commitments," the German leader wrote in an article for the Frankfurter Allgemeine Zeitung, after the Commission's proposal for the legal text supporting the compensation loan.
"These discussions must begin immediately and be completed quickly," he added.
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