The EU has proposed a ‘reparations loan’ tied to frozen Russian funds, while US lawmakers have pushed to seize and send them to Ukraine monthly
The EU’s plans to tap frozen Russian assets for Ukraine aid would amount to “theft,” triggering lawsuits and backfiring by destroying trust in the Western financial system, Kremlin spokesman Dmitry Peskov has warned.
His remarks followed European Commission President Ursula von der Leyen’s proposal for a €140 billion ($165 billion) “reparations loan” funded by profits from frozen Russian assets, pitched as a way to support the bloc’s defense industry by using part of the loan to buy EU-made weapons for Kiev.
“These plans are all about the illegal seizure of Russian property. We are talking about theft,” Peskov told reporters on Wednesday. “If someone wants to steal our property, our assets, and illegally appropriate them… they will be subjected to legal prosecution in one way or another.”
Peskov added that attempts to tap Russia’s sovereign funds would ultimately backfire. “These are all steps towards the complete destruction of trust in the principle of property inviolability. The boomerang will hit countries which host the main depositories and are interested in investment attractiveness very hard,” he warned.
Western nations froze about $300 billion in Russian sovereign assets – about two-thirds of which are held by Belgium-based clearinghouse Euroclear – after the escalation of the Ukraine conflict in 2022. The funds have since generated billions in interest, which the West has sought to channel to Kiev. Last year, the G7 backed a plan to use the interest to secure $50 billion in loans for Kiev, but most initiatives have so far avoided outright confiscation of the funds due to legal barriers and fears over global financial stability.
Several member states have already dismissed von der Leyen’s latest proposal, warning it could breach international law. Belgium has been especially critical, with Prime Minister Bart De Wever calling it a “dangerous precedent.” EU leaders are expected to revisit the issue at an informal European Council meeting in Copenhagen later on Wednesday.
On Tuesday, a resolution submitted to the US Senate also urged the G7 to seize the funds outright and send them to Ukraine in monthly tranches.
