Portugal backs using frozen Russian assets for Ukraine, understands Belgian concerns
Portugal and Belgium's Positions on Frozen Russian Assets
LISBON, Sept 11 (Reuters) - Portugal supports using frozen Russian assets to aid Ukraine but understands Belgium's demand for EU-wide guarantees against potential financial risks, Foreign Minister Paulo Rangel said.
Background on Frozen Russian Assets
• Most of the roughly €200 billion ($232.54 billion) in frozen Russian assets held in Europe are kept at Brussels-based clearing house Euroclear, placing Belgium at the centre of the debate over whether the funds should be used to support Ukraine.
European Commission Proposal and Belgian Response
• The European Commission last year proposed using the assets to back a loan for Ukraine. But Belgium rejected the plan, saying it lacked guarantees against potential lawsuits and Russian compensation claims, insisting the risks be shared across the European Union.
Portugal's Support and Conditional Alignment
• "Portugal is favourable and will never be an obstacle to the use of those €200 billion," Rangel told a parliamentary committee late on Thursday, adding that if a European consensus emerged in favour of using them, Portugal would align itself with that position.
Belgium's Concerns Over Financial Risks
• Belgium's concerns and its call for EU-wide guarantees were "truly pertinent", however, he said, arguing that any arrangement that left it bearing a disproportionate share of the legal or financial risks could undermine the country's credibility in international markets.
Prospects for a Constructive Solution
• Rangel said he hoped a "very constructive solution" could be found, while acknowledging that difficulties remained in securing guarantees for Belgium because some EU member states were seeking greater clarity on the financial framework.
Additional Information
($1 = 0.8601 euros)
(Reporting by Sergio Goncalves; Editing by Joe Bavier)
