EU would act in ‘full solidarity’ to protect Belgium if Russia retaliates against frozen assets being sent to Ukraine – Europe live | Ukraine

Poland’s prime minister Donald Tusk has just popped out to brief Polish journalists briefly on the conversations so far, starkly warning them about the stakes of today’s talks.

He told them that the leaders are engaged “in a very difficult process” of trying to come to an agreement, with a group of more critical countries “theoretically most at risk from some sort of retaliatory or financial action from Russia,” primarily Belgium, asking for clear guarantees and safeguards. He says they are looking for ways to make all countries comfortable with what’s being proposed.

But Tusk starkly set out what’s at stake in today’s talks, as he tells reporters that “Polish independence would be under threat if it turns out that as a consequence of poor decisions or a lack of action from Europe, Ukraine war forced to surrender.”

“I want this to finally sink in for everyone – not just for our colleagues here in Europe, but for everyone in Poland as well – that when we talk about the necessity of supporting Ukraine using these Russian funds, it is because we know full well that Ukrainian independence pushes the risk of aggression or war away from Polish borders. Conversely, the fall of Ukraine as a result of this war would mean a direct threat to Poland,” he says.

EU proposes new draft language to convince Belgium, but it’s all yet to be confirmed – snap analysis

Jennifer Rankin

in Brussels

The EU would act in “full solidarity” with Belgium and other member states affected by any fallout from the reparations loan, according to a draft summit text.

Belgium, which holds most of the €210bn frozen Russian assets in the EU, has said it will not sign up to a reparations loan for Ukraine unless it has unlimited guarantees the rest of the union will help pay the bill if Moscow is successful in suing for its money.

The latest version of the summit communique, seen by the Guardian, shows that EU officials striving to convince the Belgians.

“The European Union will act in full solidarity with affected member states and financial institutions in the EU in the context of the reparations loan.”

The text promises “EU solidarity and risk sharing among all member states providing guarantees proportional to the size of their economy” and notes that some support could be for non-military purposes.

This underlines that not all member states, i.e, Hungary and Slovakia, support a reparations loan and therefore the guarantees that go with it. The text also offers a way to involve neutral states, such as Ireland, who provide non-lethal military and civilian aid only to Ukraine.

It also states the guarantees would have no impact on how member states account for their national debt – a crucial point as several EU countries are already in special measures for excessive government debt and deficits.

And it stresses the importance of “burden sharing and coordination of efforts with G7 and other like-minded partners”. That means the EU wants other countries holding Russian assets – the UK, Japan, Canada, Switzerland and Norway, for instance – to follow suit if leaders agree to tap the assets as the basis for a loan.

All these points and many more remain in square brackets, the negotiating shorthand for to be confirmed…

We will find out later, probably much later, if Belgium is convinced.

Meanwhile, and the timing is not accidental I think, Russia’s central bank has just made it very clear what it thinks about the discussions in Brussels.

In a short press statement right on cue, it said that “in connection with the ongoing attempts … to illegaly seize and use” its assets, it just wanted to warn everyone that would take legal actions to “recover damages from European banks in a Russian arbitration court,” demanding not just the value of “illegally withheld assets,” but also “lost profits.”

Briefing the press after her chat with leaders this morning, European Parliament’s Roberta Metsola says “we need to keep the momentum, we need to stand united with our Ukrainian partners.”

She says the focus is on taking decisive actions to “make sure that this war is not simply postponed, but ended, and it requires strong and robust security guarantees that will ensure Ukraine’s security, and, ultimately, Europe’s security.”

She says today is the “crunch day” for taking decisions on financing Ukraine.

Posting a snap from inside the room, European Council president António Costa confirms the “exchange” with Zelenskyy is now under way.

He says:

“Peace is not cheap. It is priceless.

Since the start of Russia’s aggression, the people of Ukraine have been paying the ultimate price for their freedom. Europe remains resolute in supporting them for as long as it takes.

Dear President @ZelenskyyUa, welcome back to the #EUCO.”

Russia to respond with ‘harshest’ retaliation if Europe moves on frozen assets

Pjotr Sauer

Russian affairs reporter

Russia has warned it will respond with “the harshest” retaliation if Europe uses frozen Russian state assets to support Ukraine – a threat that has sharpened divisions inside the EU.

Vladimir Putin has branded the European plans as “piracy” and “property theft”, while Russian officials have openly discussed seizing remaining western assets in Russia if the bloc moves ahead.

Behind the scenes, Moscow has explored legal and regulatory measures that would ease further nationalisations, building on a campaign that has already stripped foreign companies of billions of dollars since the invasion of Ukraine.

The Guardian revealed on Wednesday that Belgian politicians and senior finance officials have also been targeted by an intimidation campaign orchestrated by Russian intelligence, aimed at pressuring Brussels to block the use of the €185bn in frozen assets to support Ukraine.

Russia’s threats have landed unevenly across the bloc. Belgium, Italy and Austria – countries with banks, companies and financial infrastructure still deeply exposed to Russia – have voiced growing concern that retaliation would hit them first and hardest.

Western companies still have an estimated $127bn in assets in Russia, according to the Kyiv School of Economics Institute, while more than 2,000 foreign firms continue to operate in the country.

Moscow also controls vast sums held in so-called type-C accounts, where dividends and investment proceeds owed to western investors are frozen. The Russian business outlet RBK has reported that the Kremlin could swiftly redirect those funds into the state budget if Europe moves ahead.

EU lawyers, however, insist the legal risks are being overstated. They argue that international courts are unlikely to have jurisdiction over Russia’s sovereign reserves, and that the wave of lawsuits threatened by Moscow is designed less to win in court than to intimidate and delay Europe’s plans.

Before skipping the European Council arrivals, Belgian prime minister Bart de Wever spoke in the Belgian parliament this morning.

He told lawmakers that Belgium continued to be concerned about any plan that would leave it exposed to legal risks from Russia, and demanded strong guarantees on sharing that risk with other countries.

“We need a parachue before we jump. If we are asked to jump, we all jump together,” he said in comments quoted by Le Soir.

He acknowledged that “everything can change last minute,” but there were still issues with the proposed text that required further work.

But he stressed that the disagreement was on ‘how,’ not ‘if’ Ukraine should be funded, stressing the urgency of this challenge.

Turning to English now, Macron says the leaders want to “deliver a package of financing” for Ukraine, and “it’s very important we find the right compromise and I’m confident that we will find it.”

But he says the European position is “very clear,” with Europeans supporting Ukraine in this war effort, as they try to help with financing and on path to “a robust and solid peace.”

France’s Emmanuel Macron says the meeting comes at a critical time for Europe to demonstrate it can continue to protect itself.

After briefly losing patience with the absolute mess of microphones in front of him, he talks about the discussion on Ukraine funding and stresses “this is the decision that we must make.”

But he says “we must bring everyone together,” and find a joint position.

He also talks about the importance of continuing peace negotiations, but also pointedly references Putin’s recent comments – Merz also did that earlier – as a sign that Moscow isn’t necessarily serious about ending the war.

All eyes are on Belgium’s Bart de Wever today, who has been very outspoken about what he sees as risks arising from the reparations loan, and quite open about the pressure he and his government has faced from both European allies, and from Russia.

We may not get a doorstep reaction from him this morning, though, as he appears to be keen to keep his cards close to his chest, Euronews is reporting.

A poll earlier this week showed he was broadly supported by the Belgian public, with more than 60% backing his opposition to the EU’s plan. But can he deal with the pressure when in the same room as Ukraine’s Zelenskyy?

Earlier this month, he caused quite a stir saying at a public event that it was “complete illusion” to believe Russia would lose the war, as he complained about “incredible” pressure around the issue.

In an edited transcript of the event, the La Libre newspaper quoted him as saying that “Moscow has let us know that … Belgium and I personally will feel the effect [of seizing Russian assets] for eternity,” adding: “That seems like a pretty long time.”

But that’s not the only form of pressure experienced by Belgium.

Belgian politicians and senior finance executives have been subject to a campaign of intimidation orchestrated by Russian intelligence aimed at persuading the country to block the use of €185bn assets for Ukraine, according to European intelligence agencies.

Security officials indicated to the Guardian that there had been deliberate targeting of key figures at Euroclear, the securities depository holding the majority of Russia’s frozen assets, and leaders of the country.