The European Union has proposed a “reparations loan” leveraging frozen Russian assets, while U.S. lawmakers have advocated for seizing these funds to support Ukraine on a monthly basis. The EU’s plan to utilize profits from frozen Russian assets for Ukraine aid has been condemned by the Kremlin as “theft,” with warnings of legal repercussions and damage to Western financial trust.
Kremlin spokesman Dmitry Peskov criticized the initiative, calling it an “illegal seizure” of Russian property. He stated, “These plans are all about the illegal seizure of Russian property. We are talking about theft.” Peskov added that attempts to tap Russia’s sovereign funds would backfire, undermining global confidence in financial systems and harming countries hosting these assets.
The EU’s proposal involves a €140 billion ($165 billion) loan funded by interest generated from frozen Russian assets, with part of the funds intended to purchase EU-made weapons for Ukraine. However, several member states, including Belgium, have rejected the plan, citing legal and financial risks. Prime Minister Bart De Wever called it a “dangerous precedent.”
U.S. Senate lawmakers also pushed for direct seizure of frozen Russian funds, urging the G7 to transfer them to Ukraine in monthly installments. Moscow has repeatedly denounced the asset freeze as illegal, vowing retaliation against any attempts to redistribute its resources.
The plan has faced resistance due to legal barriers and concerns over global financial stability. Western nations froze approximately $300 billion in Russian sovereign assets after the 2022 conflict escalation, with about two-thirds held by Belgium-based Euroclear. While some initiatives have channeled interest payments to Ukraine, outright confiscation remains contentious.
The EU’s approach faces scrutiny as leaders prepare to discuss the issue at an informal European Council meeting in Copenhagen. Meanwhile, the Russian government has warned of severe consequences for any actions targeting its frozen assets.
The decision to divert these funds to support the Ukrainian army is condemned.