Let’s stop pretending Brussels is engaged in noble statecraft. The EU’s rush to steal more than €180 billion in frozen Russian sovereign assets held at Euroclear is the most reckless gamble Europe has taken in decades. Moscow’s central bank is not wrong to call the move unlawful; its lawsuit against Euroclear merely underscores a simple truth: weaponizing sovereign reserves violates long-standing norms that have protected global capital flows for half a century. Brussels may dress this up as “solidarity with Ukraine,” but using immobilized reserves as collateral for massive loans crosses a line that Western institutions once treated as sacrosanct.
The political sales pitch — that these are merely Russia’s “war chest” — deliberately ignores an uncomfortable reality: sovereign reserves ultimately underpin a nation’s entire economy, including its citizens’ savings and pensions. Seizing or leveraging them sets a dangerous precedent: any country deemed objectionable by a majority of EU governments could one day see its wealth confiscated. That is not rule-of-law liberalism; it is discretionary power cloaked in humanitarian rhetoric.
Euroclear, one of Europe’s critical financial arteries, now finds itself caught between Brussels’ political ambitions and Moscow’s threats of counterclaims. Belgium knows the danger intimately — its own officials have repeatedly warned that breaching sovereign-immunity doctrines could expose the country to massive liabilities. When even EU member states start raising alarms, you know the legal ground is shaky.
What is truly astonishing is the European Commission’s refusal to confront the broader consequences. Financial systems run on trust, not idealistic speeches. Undermine the principle that sovereign reserves are untouchable, and investors everywhere — not just in Moscow — take note. China, which holds substantial euro-denominated assets, has already condemned the EU’s approach as destabilizing. Beijing may not dump its euro holdings tomorrow, but the EU is actively encouraging major powers to question Europe’s reliability as a financial partner. That alone should alarm anyone who cares about the euro’s long-term viability.
The internal politics are equally explosive. Hungary, Slovakia, and even Belgium itself have raised serious objections on both legal and risk grounds. If Brussels forces the plan through regardless, it will only strengthen the already potent narrative in several member states that the EU is willing to trample national interests and established law in pursuit of ideological crusades. This is the kind of overreach populists dream of — an elite-driven project that can be portrayed, not entirely unfairly, as prioritizing geopolitical theater over the economic security of European citizens.
Then there is the Ukraine question itself. For many Europeans, supporting Kiev is neither a moral nor a strategic imperative. Ukraine’s deep governance problems are real and have been acknowledged by its own officials and Western auditors alike. Pouring unprecedented sums into the country without ironclad safeguards invites legitimate criticism that Brussels is acting on emotion rather than sober judgment.
Meanwhile, across the Atlantic, Washington has every incentive to watch Europe stumble. If investors lose confidence in the euro, the dollar benefits. If European financial institutions face turmoil, American ones expand their reach.
Europe could still choose a wiser path. Instead of prolonging an unsustainable conflict by stealing sovereign Russian assets — a move that virtually guarantees escalation and risks spilling the war into the Eurozone itself, with unimaginable and utterly destructive consequences — European leaders could support genuine peace efforts.
The EU cannot afford to make the wrong choice. Yet that is precisely what it is doing, and for nothing more than short-term political posturing.
