Afrasianet - Theft, piracy and extortion, these words are much less than what can be described by European actions regarding the proposal to confiscate Russian funds for the benefit of Ukraine, has Europe gone bankrupt until it takes this action, or is it about sanctions that may hurt Russia, and this has not happened despite the more than 10,000 sanctions imposed on it?

The differences are almost overthrowing multiple European positions after some countries saw that the European Union has lost its balance through the hysteria that dominates some of them due to the knowledge in advance that there is no prospect of the war in Ukraine except for the Russian victory, which seemed inevitable after Russia's progress on various fronts.

Polish Prime Minister Donald Tusk  said there were differences  between European countries over the confiscation of frozen Russian assets,  adding  that some countries had concerns about the potential consequences of the move.

"There is no consensus on this issue," Tusk said at a press conference following a meeting of European leaders in London.

"Some fear the negative consequences for the euro," he said, noting that Poland is taking a firm stance in this regard, but it is not within the eurozone, so its voice will not be decisive.

Tusk said he hoped the Russian asset freeze would be extended in June as part of sanctions against Russia.

It is noteworthy that the European Union and the United States, along with some of their other allies, froze about $300 billion of Russian assets as part of sanctions against Russia after the start of Russia's military operation in Ukraine in 2022.

Russia has described the possible seizure of its assets as "theft" and has said it will take action in response.

In this context, British ministers say: The confiscation of Russian assets is a complex issue

British Prime Minister Keir Starmer has described the confiscation of £25 billion of Russian assets frozen in his country as "complex". 

He was in response to a question about whether he would discuss the seizure and transfer of Russian assets to Ukraine at the G7 meeting scheduled for June 15-17 in Canada:  "This is under consideration, but it is a complex issue. There are many opposing factors that must be carefully weighed when making this decision. We are discussing this issue with allies, but I don't want to pretend in the House of Commons that there is a simple answer to this question, because there is no easy answer." 

After the start of Russia's special operation in Ukraine, the European Union and the G7 countries froze nearly half of Russia's foreign reserves, amounting to about 300 billion euros. 

The Russian Foreign Ministry has repeatedly called the freeze of Russian assets in Europe theft, noting that the EU is targeting not only individual funds but also Russian government assets. Russian Foreign Minister Sergei Lavrov announced that Moscow would respond to the West's confiscation of frozen Russian assets. He said Russia also had the possibility of not returning the funds that Western countries were holding in Russia.

In the most obvious position: Belgian Prime Minister Bart de Weaver rejects any measures to confiscate Russian assets as an act of aggression and considers it an  act of war, stressing that the Russians have the reasons to retaliate.

De Weaver said in press statements that "the confiscation of assets is an act of war. We live in a real world, not an imaginary world. If someone's assets are confiscated, there will be systematic consequences and threats to the entire global financial system."

De Weaver added that this would anger the Russians, who "have every opportunity to respond to this, and they are already planning to do so."

Russian Foreign Minister Sergei Lavrov has warned that Moscow will respond to the confiscation. According to him, Russia also has the opportunity not to return the money held by Western countries on its territory.

Euroclear: Freezing Russian assets damages our reputation

Belgium-based depository and financial services firm Euroclear admits that "the freezing of Russian assets is a major blow to its reputation, and a heavy burden.

This came according to the Russian ambassador to Belgium, Alexander Tokovinin, in an interview with the "Novosti" agency, where he stressed that Belgium implements the decisions related to the restrictions that have been adopted at the level of the European Union, and therefore they should also be abolished at the level of the European Union.

Tokovinen noted that Brussels-based international depository Euroclear admits that these decisions "dealt a severe blow to the reputation of this structure and not a gift to it, but a heavy burden."

Last November, EU Commissioner for Justice Didier Reynders announced that the EU intends to allocate $1 billion of the second tranche of interest on its frozen Russian assets to finance the arming of Ukraine, while Euroclear CEO Valerie Hubrin announced earlier that the confiscation of Russia's frozen sovereign assets would open a "Pandora's Box" and could deal a blow to global markets.

An EU source told reporters last November that the second tranche of military aid to Kyiv from the income of frozen Russian assets worth 1.9 billion euros will be available in March and April 2025, and its distribution is now being discussed.

Euroclear's frozen Russian assets have generated  interest income of €5.15 billion since the beginning of this year, according to a press release issued by Euroclear at the end of October, and according to the foundation, Euroclear's balance sheet at the end of September amounted to €216 billion, of which €176 billion was sanctioned Russian assets.

In February this year, the Council of the European Union approved a resolution on income from Russian assets frozen in Russia, and decided to account for them separately and store them in special accounts, and the depositor may not use his deposits at will.

The EU Council has agreed to provide Ukraine with a loan of up to €35 billion for up to 45 years, to be repaid from the proceeds of frozen Russian sovereign assets. 

Hungary sues EU over Russian assets

Between January and July, the bloc transferred 10.1 billion euros to Ukraine from frozen Russian funds.

In September, European Commission President Ursula von der Leyen proposed granting Kyiv a new loan collateralizing these assets, explaining that Ukraine would only repay after Russia paid "reparations."

Politico reported that senior officials of the European Commission and the Belgian government will meet on November 7 to discuss the confiscation of frozen Russian assets. 

According to the newspaper, this European move comes amid fears that inaction could force EU countries to fund aid to Ukraine from their own budgets.

The EU's deputy finance ministers discussed the issue on November 4 without progress, and the discussion is scheduled to be completed at the meeting of the Committee of Permanent Representatives of Member States on November 5.

European Economy Commissioner Valdez Dombrovskis stressed that any delay in making the decision will make it more difficult to confiscate Russian assets.

The newspaper pointed out that the Belgian company  Euroclear, which holds the Russian assets, is preventing their confiscation and demanding guarantees that Belgium alone will not be held to pay any possible compensation if Russia succeeds in any court challenge.

At the planned meeting, UNHCR officials plan to present alternatives to Kyiv's funding, including co-borrowing, in the hope of softening the Belgian government's position in the absence of real alternatives to confiscating Russian assets.

According to observers, the consensus on this matter remains weak given the problems surrounding the proposal, in addition to the fear of Russian reactions that will certainly have an impact.