Belgium Joins Ranks Against Self-Harming Russia Sanctions

Just because it is running out of options for punitive measures against Russia and is again having to lean on Donald Trump’s administration to do the heavy lifting, does not mean that Brussels should impose measures that are more likely to harm European capitals than Moscow.

A formal proposal for the European Union’s 19th sanctions package against Russia since the war began is expected to be unveiled before the end of this week.

Brussels is again keen to present the image of a united effort to punish Moscow, but concerns actually appear to be growing from within about the self-harm likely to be done by certain measures.

Belgium’s Vice-Prime Minister and Foreign Minister Maxime Prévot recently told journalists that confiscating Russian sovereign assets “is not an option” as far as his government is concerned.

Such a confiscation, motivated by a political decision rather than a legal or judicial one, would be likely to cause a terrible systemic shock across all European financial markets, deal a severe blow to the credibility of the euro, and thus have very problematic domino effects.

Prévot also explained that confiscating Russian assets from Belgian banks would send “a very bad signal to other countries worldwide. Some of them also have assets, sovereign assets in Brussels or in other places in Europe.”

His comments will no doubt be received badly by Brussels, which is also having to tread carefully around concerns raised by the governments in Hungary and Slovakia. Slovakia blocked the last, 18th sanctions package against Russia for days until it was given written assurances on energy security.

Trump also said over the weekend that he is ready to move to “the second phase” of sanctions against Moscow after Russia attacked Ukraine with what is being described as the largest aerial attack of the war.