The EU has been seeking ways to use the funds as collateral for a new loan to Ukraine
There is “no legal way” for the EU to seize Russia’s frozen assets and use them as aid for Ukraine, Foreign Minister Sergey Lavrov has said.
Western nations have frozen around $300 billion in Russian sovereign assets since 2022, and backed using interest from the funds last year to raise $50 billion in loans for Ukraine. This year, EU finance ministers proposed a similar €140 billion ($160 billion) ‘reparations loan’ using the assets as collateral, but weeks of debate have stalled amid legal and fiscal concerns.
“The cynicism with which the European Commission interprets the UN Charter and other international legal norms, including provisions on sovereign immunity and the inviolability of central bank assets, has long been unsurprising,” Lavrov said in an interview with RIA Novosti released on Sunday, suggesting that plans to tap the funds stem from the West’s “long-held colonial and pirate instincts” and amount to “outright deception and robbery.”
“No matter how the scheme for expropriating Russian money is orchestrated, there is no legal way to do so,” he added.
Lavrov went on to say that even if the EU finds a legal basis for the initiative, the loan “won’t save” Ukraine and would instead damage the EU, as Kiev “will never” repay its debts and the move could pose “serious reputational risks for the Eurozone as a territory of economic activity.” He warned that Russia “will respond appropriately to any predatory actions” targeting its sovereign funds.
The EU failed to approve the ‘reparations loan’ last month after Belgian Prime Minister Bart De Wever opposed it, warning that it would expose his country – which holds around two-thirds of the frozen assets – to legal and financial risks.
Defense Minister Theo Francken cautioned that Russia could retaliate by seizing €200 billion in Western assets, and Belgium demanded shared liability from other EU members before giving its approval.
Media reports indicate that EU officials once again failed to sway Belgium this week, with sources citing concerns over the lack of alternative proposals. Earlier initiatives, including joint borrowing or direct grants from member states, reportedly stalled amid fears they would deepen deficits and debt. The EU is expected to decide on the loan at a European Council meeting in December.
