Portugal Backs Use of Frozen Russian Assets

Portugal supports using frozen Russian assets to aid Ukraine but understands Belgium’s call for Europe-wide safeguards against financial risks, Foreign Minister Paulo Rangel said.

Most of the approximately €200bn in frozen Russian assets in Europe are held at the Euroclear clearing house in Brussels, placing Belgium at the center of the debate. Last year, the European Commission proposed using the assets as collateral for a loan to Ukraine.

Belgium rejected the proposal because it lacked guarantees against potential legal disputes and Russian claims for compensation. It is therefore calling for the risks to be shared among EU member states.

Rangel told a parliamentary committee that Portugal would not stand in the way of using the €200bn and would support such a move if there were a European consensus.

He described Belgium’s concerns as justified, saying that a disproportionate share of the legal or financial risks could undermine the country’s credibility in international markets. At the same time, he acknowledged that questions remain over the provision of guarantees, with some EU member states calling for a clearer financial framework.

(Reuters, mja)