New EU draft text on Russian assets offers uncapped guarantees for Belgium

A new draft text discussed by European Union leaders on Thursday offers Belgium and other countries holding frozen Russian assets unlimited guarantees for potential damages, should Moscow successfully sue them for an EU plan to lend them to Ukraine.

The new draft text, seen by Reuters, also offers EU countries and institutions whose assets may be seized by Russia in retaliation the possibility to offset such damages against Russian assets held by the EU.

The text, which is under discussion and could still change, also says the EU would put in place a mechanism offering unconditional, irrevocable, on-demand guarantees that the EU would swiftly repay the Russian central bank assets in all circumstances should the need arise.

Asked about the chances of the text being adopted in this form, EU diplomats said the lack of a limit on the guarantees would be a problem for many countries.