Belgian Court Challenges Treasury Authority Over Frozen Russian Assets
Brussels, September Belgium’s Council of State has ruled that the country’s Treasury department did not have the proper legal authority to refuse a Russian bank’s request to release assets frozen at the Brussels-based clearing house Euroclear.
The case involves BCS Bank, whose funds and securities were frozen after EU sanctions were imposed on Russia following its full-scale invasion of Ukraine. The bank had asked Belgian authorities in 2024 to release its assets, but the request was rejected.
The court’s decision does not order Belgium to return the assets. Instead, it found that the authority delegated to the Treasury’s administrator-general was not sufficiently defined under the applicable legal framework. The Belgian Finance Ministry said it was examining the ruling and its possible consequences.
The decision could have wider legal implications because other frozen-asset cases handled under the same mechanism could potentially face similar challenges unless Belgium changes or clarifies its legal arrangements.
The issue is particularly significant because Euroclear holds roughly €200 billion in frozen Russian assets. The European Union has previously explored ways to use proceeds or the value associated with immobilised Russian assets to support Ukraine, while Belgium has raised concerns about potential legal and financial liabilities arising from such a move.
Belgium’s latest court ruling therefore adds a new legal dimension to the broader European debate over frozen Russian assets, their ownership and the conditions under which they can be released or used.
The Belgian government is expected to assess the ruling before determining whether changes to the country’s legal framework are necessary.
