European officials are considering using an 81-year-old Belgian law as an emergency measure to keep blocked Russian assets in Belgium if Hungarian Prime Minister Viktor Orbán does not agree to extend EU sanctions, Financial Times reports.
Since Russia invaded Ukraine in February 2022, Belgium has blocked approximately €190 billion in assets from the Russian central bank held at securities house Euroclear as part of EU sanctions. The EU has been using the profits arising from those assets to lend money to repay a $50 billion loan to Ukraine. Officials believe they are a critical part of a potential ceasefire agreement.
EU sanctions are due to be extended by the end of January, but Orbán has threatened to use his veto. The rollover of EU sanctions requires unanimous approval. Without the extension, there would be no legal basis to keep the assets in Belgium. Orbán is reportedly awaiting the inauguration of US President-elect Donald Trump on Monday. If he eases US sanctions on Russia, Orbán said he would insist that the EU follows suit.
1944 Belgian decree
While the EU's primary aim is to persuade Orbán to change his stance, EU officials are drawing up fallback measures. This includes using a 81-year-old Royal wartime decree in which the Belgian King can safeguard the bloc's sanctions against Russia, Financial Times reported on Friday.
The decree, passed in 1944, allows King Philippe to block the transfer of assets from the country. As the state assets are physically held at a Belgian entity, this fallback option is feasible.
The newspaper cites four officials involved in the discussions. The responsibility for such a decree lies with the government, although it would need to be signed by the sovereign, Financial Times added. The office of outgoing Prime Minister Alexander De Croo (Open VLD) declined to comment.
