Belgium to set up €1.7 billion fund to help Ukraine with money from frozen Russian assets

Belgium intends to create a special fund to support Ukraine in the amount of 1.7 billion euros this year, using the proceeds from the retention of frozen Russian assets in the country. 

This was stated by Belgian Prime Minister Alexander de Croo at a joint press conference with President of Ukraine Volodymyr Zelenskyy in Brussels, an UKRINFORM correspondent reports.

“The source for the €1.7 billion Ukrainian Fund will be hundreds of billions of Russian financial assets frozen in Belgium. In Belgium, we have a system of taxation of income from these frozen Russian assets. For us, it is obvious that taxes on income from these assets should be 100 percent directed to the needs of Ukraine. We did it last year and we will do it again. This year, the amount will be 1.7 billion euros,” said the head of the Belgian government.

According to him, the fund will be used for military assistance, humanitarian support, projects under the European Peace Fund, macroeconomic assistance, etc.

De Croo also explained that Belgium does not have access to billions of dollars of Russian financial assets on its territory and bank accruals on these assets, which are frozen by the decision of financial institutions. In order to gain access, appropriate changes to European legislation are required. Therefore, Belgium, together with other EU countries and the European Commission, is looking for legal ways to allow the legal use of these funds for Ukraine’s recovery projects.

“If at some point the legislation is changed, we will be among the enthusiasts (of using these funds – ed.), but now it is not possible,” De Croo said.

In this regard, Prime Minister Denys Shmyhal thanked Belgium for the decision to create a fund to support Ukraine.

“I thank Alexander de Croo (Prime Minister of Belgium – ed.) and the entire Belgian people for their solidarity with Ukraine. We appreciate the decision to create a support fund in the amount of 1.7 billion euros and the use of frozen assets,” Shmyhal emphasized.

He also thanked Belgium for its military assistance, including F16 aircraft. “We will win together,” the Prime Minister is confident.

As reported, President of Ukraine Volodymyr Zelenskyy is making an unannounced visit to Belgium. He took part in the work of the US-led Contact Group on Ukraine’s Defense, held talks with NATO leaders, and discussed bilateral cooperation with the Belgian government.

Ukraine Front Lines

Tags: belgium Business frozen russian assets russia ukraine war