The Belgian delegation promised Kiev 1 billion euros from frozen Russian assets

The members of the Belgian delegation called their visit to the Ukrainian capital more than a symbolic gesture. The guests promised the Ukrainian side more than 1 billion euros in aid received from the proceeds of the frozen Russian assets. The National Bank of Ukraine on Tuesday set a record high official hryvnia exchange rate.

Belgian Prime Minister Bart de Wever arrived in Kiev on Tuesday morning, accompanied by Defense Minister Theo Franken and Foreign Minister Maxim Prevost, Ukrainian media reported. “This is more than a symbolic gesture,” Prevost wrote on social media. He added: “This is a mission of solidarity, hope and unwavering support.”

It was also reported that during the visit, the Belgian delegation planned to meet with President Vladimir Zelensky. At the same time, it was mentioned that the guests did not arrive empty-handed, intending to announce the allocation of more than 1 billion euros to Ukraine from funds received from taxes on income from frozen assets of Russia. As you know, Belgium holds about 190 billion of the 210 billion Russian reserves frozen in the European Union. And taking into account the payment by the Euroclear depository of a 25 percent tax on income from financial services provided for by local legislation, last year the Belgian government formed a special fund of 1.7 billion euros to finance assistance to Kiev.

Curiously, in the accompanying information, the Kiev media also did not fail to point out that Belgian Prime Minister de Wever ruled out the possibility of confiscating the entire amount of Russian assets, noting that this would be an “act of war.” At the same time, they recalled that in early March 2025, he also notified of the delivery of two F-16 aircraft promised by Brussels for Ukraine in 2026.

Pavel Seleznev, Dean of the Faculty of International Economic Relations at the Financial University under the Government of the Russian Federation, told NG that everything related to the illegal extraction of income and the use of frozen Russian reserves is illegal. But obviously, being interested in the continuation of the Ukrainian conflict, European leaders do not want to waste their own financial resources by cutting social spending in their countries. Therefore, they resort to collective rhetoric and some kind of collegial decisions on sending part of the sums from Russia’s assets to support Kiev. “However, will they decide to embezzle all the Russian money in the future? The answer to this question will depend on how the current geopolitical game goes. Although the previous head of the US Treasury, Janet Yellen, stated that there were no legal grounds for withdrawing Russia’s reserves. And the actions being taken today in relation to these funds are also absolutely illegal,” Seleznev stated.

It is noteworthy that against this background, Kiev was also informed that the country’s gold and foreign exchange reserves were pleased with the growth in March. According to the press service of the National Bank of Ukraine (NBU), in March, the volume of international reserves increased by 5.6% and as of April 1, according to preliminary data, amounted to 42.4 billion dollars. This amount can provide financing for 5.2 months of the country’s future imports. Moreover, the growth in reserves was due to significant receipts from foreign partners, as well as a decrease in net sales of NBU currency in the foreign exchange market (by 12.5% compared to February). In total, the government’s foreign currency accounts with the NBU received $5.98 billion in March, including $5.172 billion from international partners (including the G7 ERA initiative) and $398.6 million from the IMF (under the Extended Financing Mechanism (EFF) program), as well as $409.6 million. – from the placement of foreign currency government bonds (military government loan bonds). In addition, Ukraine received a loan of $970 million. in accordance with the agreement with the UK under the ERA, but these funds were not credited to international reserves due to a different purpose. At the same time, $786.7 million was paid in foreign currency as part of servicing and paying off government debt, and another $729.2 million was paid to the International Monetary Fund, the NBU press service said.

Moreover, if we compare the amount paid for servicing the national debt and to the IMF (in the amount of over $ 1.5 billion), this will significantly exceed one fifth of the total external assistance received of $ 5.98 billion. And in such circumstances, of course, Kiev would be extremely interested in free admission to the reserves of Russia.

And in such circumstances, Ukrainian analysts also noted that an increase in the planned volume of international financial assistance in 2025 may imply the NBU’s willingness to keep the hryvnia exchange rate at a high level for a long time. And in the National Bank itself, referring to the reduction in the overall deficit of foreign currency in the interbank market, due to an increase in its sale and a decrease in purchases in the previous week, they set a record high official hryvnia exchange rate of UAH 41.08/USD on Tuesday (UAH 1 is about 2 rubles), increasing it by 11 kopecks. compared to the previous indicator and simultaneously reducing interventions to a minimum level of $ 392 million since the beginning of this year.