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Another Crazy Idea On How To Steal Russia’s Assets: Make EU Taxpayers Pay For It
The war hawks have long tried to steal Russian assets held in West to then use the money to finance the proxy war against Russia. The sums involved are serious:
Nearly three years after the start of Russia’s invasion of Ukraine, Belgium holds €258 billion in frozen or immobilised Russian assets.
The General Administration of Treasury at the Ministry of Finance confirmed the figures on Wednesday to La Libre and De Tijd.
Some of these assets belong to institutions not sanctioned by the European Union. Frozen assets amount to €65 billion, with an additional €193 billion in immobilised transactions, primarily from the Central Bank of Russia.
The money is not really held by Belgium but by the Belgium company Euroclear which acts as depository for international central bank assets denominated in Euros.
Currently the EU is confiscating the interest, not the principal, of that money to distribute it to Ukraine. That step is likely already illegal and Russia will certainly use the courts to get it back.
There were also talks to invest the Russian assets in junk bonds with aim of achieving a higher yield:
Euroclear chief executive Valérie Urbain told the Financial Times that European Union plans to raise additional revenue from frozen Russian assets by investing them in higher-risk securities would amount to “expropriation.”
Urbain also warned that such a move could prompt “Russian retaliation in all sorts of forms,” as well as damage Euroclear’s reputation.
The majority of Russian assets frozen after Moscow’s full-scale invasion of Ukraine are currently held at Euroclear.
The E.U. has reportedly been discussing the possibility of transferring these assets to a special E.U.-administered fund that would make higher-risk investments. The goal is to generate greater returns to support Ukraine.
That move was blocked as no one was ready to accept the potential liability for it. Not only Belgium, but also Germany and other fiscal conservative states, have warned that such a move would endanger their own assets. Russia has announced that it will retaliate against any confiscation of its money. It threatens to confiscate whatever European companies own or hold in Russia. Those companies would then have to sue their own governments for cover of their losses.
Now a new idea has crept up. How it is supposed to work is not clear to me but it seems to have the support of the German Chancellor Friedrich Merz.
In a Financial Times op-ed Merz claims (archived):
Germany has been, and remains, cautious on the issue of confiscating the Russian central bank’s assets that are frozen in Europe, and with good reason. There are not only questions of international law to consider, but also fundamental issues concerning the euro’s role as a global reserve currency. But this must not hold us back: we must consider how, by circumventing these problems, we can make these funds available for the defence of Ukraine.
In my view a viable solution should now be developed whereby — without intervening in property rights — we can make available to Ukraine an interest-free loan of almost €140 billion in total. That loan would only be repaid once Russia has compensated Ukraine for the damage it has caused during this war. Until then, the Russian assets will remain frozen, as decided by the European Council.
Such extensive assistance will require budgetary guarantees from member states. Those bilateral guarantees should, as soon as the next Multiannual Financial Framework is in place in 2028, be replaced by collateralisation under the EU’s long-term budget.
What sounds like AI slop is not Merz’ own idea but a plan that had been proffered earlier by the EU commission. But no one seems to understands how its is different from an outright confiscation of those assets:
Frustration has been building in EU capitals around the lack of details surrounding the so-called reparations loan, which Commission President Ursula von der Leyen first pitched in her State of the European Union speech Sept. 10.
The bulk of the Russian assets are held by the Brussels-based financial firm Euroclear and are invested in Western government bonds that have matured into cash. The cash is sitting in a deposit account with the European Central Bank.
The idea is for the EU to redirect the cash to Ukraine and “enter into a tailored debt contract with Euroclear at 0 percent interest,” according to the note.
Euroclear holds €185 billion in cash balances linked to the Russian assets, a part of which will pay back a preexisting G7 loan to Ukraine.
The remaining €140 billion will be paid out to Ukraine in tranches and used for “defense cooperation” as well as supporting Kyiv’s ordinary budget needs.
Reuters has more details on it:
To avoid seizing the Russian assets, the idea is to transfer the cash from Euroclear to a newly created Special Purpose Vehicle (SPV) owned by EU governments, or G7 governments as well. In exchange, the European Commission would issue Euroclear with zero-coupon bonds guaranteed by the owners of the SPV.
The EU bonds would cover Euroclear’s risk against Russian litigation while the cash in the SPV could be invested more profitably than overnight deposits in the ECB and thus generate a higher return for Ukraine.
Why would this scheme, as Merz say, ‘require budgetary guarantees from member states’? Doesn’t that mean that the tax-payers of those member state will eventually have to pay it? Who’s money is at risk when Russia wins its litigation? Who pays if something goes wrong?
Some 62% of German voters disapprove (in German) Merz’ policies. Only a record low 35.5% says that he is right in what he is doing. In the fiscal conservative Germany any attempt to borrow more money for the war in Ukraine will further sink his and his party’s chances of ever being reelected.
Merz knows that the scheme has little chance to find unanimous EU approval. He plans to circumvent (archived) opposition to it:
I propose that, at the European Council at the end of October, we give the mandate to prepare this instrument in a legally secure manner.
That decision should, ideally, be unanimous — failing that, it should be adopted by the large majority of member states who are firmly committed to Ukraine. We should also invite partners around the world that have frozen Russian assets to join the instrument. To this end, we will co-ordinate closely with our partners in the G7.
Luckily it is Belgium which has the last says in this. It is, naturally, opposing the scheme:
Speaking in the margins of the UN General Assembly, Mr De Wever said that Chancellor Merz’s proposal “will never happen”. The Belgian Prime Minister argues that seizing central bank assets of a third country would set a dangerous precedent
“If countries see that central bank money can disappear when European politicians see fit, they might decide to withdraw their reserves from the eurozone.”
De Wever added Chancellor Merz’s public statement regarding this is regrettable. “I’ve told everyone that I am happy to discuss this. But let’s talk and come up with something, rather than sharing an opinion on it every day. I find it quite frustrating.”
It is, in the end, Russia’s money. Any attempt to seize is outright thievery. How long will it take for sane people to intervene and to shoot this idea down?
🇺🇸🇺🇦🇷🇺Zelensky asked Trump for “Tomahawk” missiles with a range of over 1600 km at a closed meeting, — The Telegraph 🇺🇸🇺🇦🇷🇺”If the Russians blackout us, we will attack their energy sector. We need long-range weapons from the USA” — Zelensky
The US president again said that the Russian economy is “going to hell,” and that Russia has “captured very little territory, moreover, it is even losing some land.”
🇭🇺🇷🇺Two Hungarian Gripen fighters took off over the Baltic from Šiauliai in response to the flight of Su-30, Su-35, and three MiG-31s near Latvian airspace, the NATO Air Command reports.
According to the report, the Russian aircraft did not violate Latvian airspace.
The US scrambled four F-16s along with an E-3 airborne early warning and control aircraft and tankers to “accurately identify and intercept” the four Russian planes near Alaska.
Tusk says
President Trump stated that Ukraine can, with the support of the European Union, regain all its territory. Behind this surprising optimism lies an announcement of reduced US involvement and a shifting of responsibility for ending the war onto Europe. Better truth than illusions.”
🇵🇱🇺🇦🇷🇺The rocket that fell on a Polish house was probably launched by a Dutch F-35 on duty — Onet
🇺🇦🇺🇳Zelensky is promoting the weapons he sells right from the UN podium:
We have decided to open weapons exports.
These are powerful systems, tested in real conditions, when all international institutions failed.
You don’t need to start from scratch — we are ready to share what has already proven its effectiveness in real defense.
🇺🇸🇺🇦🇷🇺Zelensky is no longer being asked to make concessions on land. Now he is being urged to return the territory that Ukraine failed to reclaim in the summer of 2023 during the counteroffensive, — CNN
z seems remotivated
🇺🇦 Mobilization intensification: all Ukrainians aged 25-60 have been entered into the military register — Kiev media
– This even affected those who did not visit the Territorial Recruitment Centers and did not install the “Reserve+” app.
– Now all draft evaders will begin to be fined.
@Slavyangrad
a note of realism
Shooting at aerial targets is practically prohibited because shells or their fragments may fall outside the barracks. In this case, people’s lives may be endangered or property destroyed,” noted Bundeswehr Colonel Klaus Glaab.
According to him, the main thing in fighting drones is to observe the principle of proportionality. At the same time, the officer admitted that the hybrid threat is very high.
“All our critical infrastructure can be attacked without tanks, planes, or ships,” he said.
and this week, Merz also appointed a commissioner for foreign investment who said one of his first orders of business will be to organize an investor conference.
Foreign investors? You just went out and said Europe should should steal $140B in Russian investments you clown. Meanwhile he borrows €500 billion and still can’t deliver decent economic growth..
Lukashenko on the fact that if Zelensky does not agree to Russia’s proposals, he will lose everything:
You can say and declare anything. But if the Kremlin strikes BankovaYa, what will be left there? Therefore, Vladimir Alexandrovich [Zelensky] needs to calm down. There is a good proposal on the table. President Putin and I discussed it, I will not speak about it, the president will say it himself. A good proposal
Maria Zakharova posts
About Kiev’s plans to conduct a false flag operation in Romania and Poland
Today, several Hungarian media outlets reported on Zelensky’s plans to carry out sabotage in Romania and Poland with the aim of blaming Russia. Thus, a “Gleiwitz incident” is being prepared in Bankovaya — with the goal of creating a Casus belli for a war between Russia and NATO.
Posted by: Jo | Sep 26 2025 19:19 utc | 72
after years of Lavrov being fed up with OSCE finally after years of Lavrov being fed up with OSCE finally Putin proposed to discuss with the parliament and the Ministry of Foreign Affairs the advisability of Russia’s participation in the activities of the OSCE Office for Democratic Institutions and Human Rights.
@Slavyangrad
Partizan on slavyangrad has details of Ruusian attacks on energy and logistics infrastructure.
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z trying to get EU motivated to deal with Hungary?The Commander-in-Chief of the Armed Forces of Ukraine reported recent incidents involving drones at the Ukrainian-Hungarian border. Ukrainian military recorded incursions into our airspace by reconnaissance drones, which are likely Hungarian drones.
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Slovakia most likely will block latest 19th EU sanctions.
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German Auto Industry to Eliminate Nearly 100,000 Jobs By 2030 – Bloomberg
—_——
We are in a state of hybrid war — Danish Prime Minister Mette Frederiksen.
In connection with flights of unknown drones over Danish airports, the country’s prime minister stated in an interview with TV 2 that a “hybrid war” is unfolding against Denmark, and what is observed now is only the beginning of the attacks.
“This is a hybrid war that we are witnessing on Danish soil, as in other European countries. We see cyberattacks, one day – hacker attacks. Drones, and then sabotage. I think we are only seeing the beginning of the attacks.
——-_
Poland has advised Polish citizens to leave Belarus.
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Germany’s Robert Bosch will cut 13,000 jobs as the world’s top autos supplier battles a sluggish market, high costs and pressure from rivals that have left it with an annual cost gap of 2.5 billion euros ($2.9 billion), it said on Thursday.
—–_-_
Only as a last resort”: The Supreme Defense Council of Romania has decided whether to shoot down aircraft violating the country’s airspace.
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Unknown UAVs recently circled over military facilities in Murmellon-le-Grand, France, reports Radio France Internationale citing official military sources.
It is reported that these were small devices, “not drones piloted by military personnel.”
—_–
The Rada threatens Moldova with military invasion if Sandu’s party fails in the elections.
If, following the parliamentary elections, Chisinau shifts its rhetoric to a pro-Russian one, then Ukraine will have to deploy resources, including, possibly, military ones.
–_—–
Germany, Mayer & Cie. — an engineering giant with a 120-year history and more than 300 patents, a world leader in the production of circular knitting machines — has gone bankrupt, Bild reports.
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Moldovan President Maia Sandu is preparing the country for war, as she has quadrupled the budget of the country’s Ministry of Defense in four years, former President Igor Dodon said.
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Trump refused z request for tomahawks.
Posted by: Jo | Sep 26 2025 20:44 utc | 83
I think the following makes a very important and relevant (to this thread) point.
That needs to be more widely known.
And, it would be interesting to know the legal situation.
WHAT IF THE RUSSIANS HAD CONDUCTED THE COUP IN 2014?
In 2014 the United States (aligned with a faction in the Ukrainian government) conducted a coup in Kiev (to replace the democratically elected Yanukovich government which was considered insufficiently pro-Europe).
Many in Eastern Ukraine rebelled against this coup-government.
A civil war began.
The coup-government claimed authority over all of Ukraine
and called itself “the Ukrainian government”.
The coup-government sent in the military to deal with the eastern rebels.
The media claimed, and still claims, that the U.S. backed coup-government had a “right” to all of Ukraine and they champion (vigorously support) a march to the Russian border.
WHAT IF THE FOLLOWING HAD HAPPENED IN 2014?
In 2014 Russia (aligned with a faction in the Ukrainian government) conducted a coup in Kiev (to replace the Yanukovich government which was considered too pro-Europe).
Many in Western Ukraine rebelled against this coup-government.
A civil war began.
The coup-government claimed authority over all of Ukraine
and called itself “the Ukrainian government”.
The coup-government called in the Russian military to deal with the western rebels.
Of course, to be consistent, the media would have to claim that the Russian backed coup-government had a “right” to all of Ukraine and that they championed a march of the Russian military to the Polish border.
The important point is that statements such as “Ukraine will not give up any of its land,” and “Zelenski Rejects Giving Land” make no sense.
This is because the coup-government, and its successors, never established authority over all of Ukraine.
ANOTHER SCENARIO
What if the Chinese (aligned with a leftist faction in the Ukrainian government) had conducted a coup in Kiev. Would this give them authority over all of Ukraine?
What is the legal situation?
Posted by: John | Sep 26 2025 20:54 utc | 85
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