The are confirmed as Russian oligarchs and investors turn against the Belgian state for the, choosing the route of international arbitration. At the center is , the central financial institution based in Brussels, where hundreds of billions of euros remain “frozen” under European sanctions against Moscow.
Nine appeals and a new legal front
According to reports in the financial newspapers L’Echo and De Tijd, nine “dispute notices” have already been filed against the Belgian State. This is the first step that can lead to international arbitration proceedings, outside the framework of national courts.
The Federal Public Finance Service confirmed the development, signaling a strategic shift by applicants. Through arbitration, claimants seek to avoid publicity and move into a more flexible, but also less predictable, legal environment with ad hoc arbitration panels composed of lawyers.
Invocation of international agreements on investment
The applicants base their legal argument on bilateral investment protection agreements concluded by the Belgium-Luxembourg Economic Union with third countries. Specifically, they invoke agreements of 1989 with the Soviet Union and 1998 with Kazakhstan, attempting to establish a right to compensation.
This option is intended to bypass the Belgian courts, where appeals have so far been unsuccessful. International arbitration offers a parallel channel of claims, with different rules and possibly greater chances of success.
At the center of 258 billion euros of Russian funds
The stakes are huge. Of the approximately 258 billion euros of Russian funds tied up in Belgium, 193 billion euros are linked to transactions by the Central Bank of Russia. The remaining amount concerns individuals and companies, some of which are not on sanctions lists.
The sums related to the nine specific cases have not been made public, adding to the uncertainty surrounding the scope of the claims and the potential fiscal implications for the Belgian state.
Dead end in national courts, turn to arbitration
To date, more than 200 appeals have been filed before the Council of State of Belgium, without the appellants being vindicated. The Belgian authorities have managed to block the proceedings, keeping the freezing regime in place.
The shift to international arbitration creates a new, more complex legal field. Unlike national courts, arbitration proceedings can evolve away from public scrutiny, and their decisions may have significant consequences for both Belgium and the European sanctions framework.
Possible implications for Europe
This development may serve as a precedent for similar moves in other EU member states that have tied up Russian funds. The issue of sanctions thus acquires a strong legal dimension, with possible effects on the coherence of European policy towards Russia.
At a time when Europe is considering ways to capitalize on frozen Russian capital, the initiation of arbitration proceedings by private investors and oligarchs adds another factor of uncertainty to the already complex geopolitical and economic landscape.
