As tensions escalate over the economic measures in the ongoing Ukraine conflict, Russia has publicly accused European Union officials of scheming to unlawfully seize and use frozen Russian assets to fund Ukraine's reconstruction and defense. Moscow’s Foreign Ministry spokesperson Maria Zakharova condemned Brussels for inventing legal justifications aimed solely at "stealing" billions of euros in Russian sovereign assets currently frozen within the EU.
These assets, valued at approximately €190 billion and primarily held by Euroclear in Belgium, have been frozen since Russia's full-scale invasion of Ukraine in 2022. The European Commission and several member states are exploring ways to use these resources, including proposals for a reparations loan to Ukraine estimated at around €140 billion, to bolster Kyiv's defenses and aid reconstruction.
Russia has rejected these initiatives vehemently, labeling them as "pure theft" and warning of retaliatory measures. Kremlin spokesperson Dmitry Peskov has stated that Moscow considers any attempt to appropriate these assets, or their income, as illegal and vowed legal actions against individuals or nations involved.
The conflict over the frozen assets is rooted in diverging legal and geopolitical stances. While European nations justify using these funds as reparations for war damages, Russia deems any such move an outright violation of international law and economic principles. Moreover, Russia has threatened to confiscate assets of Western companies operating within its borders as a countermeasure.
The controversy reflects the broader war dynamics, including economic warfare and diplomatic tensions. The EU's efforts to finalize the reparations loan face some resistance domestically, particularly from Belgium, whose Prime Minister has voiced concerns about the legal and financial risks of involvement.
Despite these hurdles, the European Union continues to push for unified action to leverage these frozen Russian assets to support Ukraine, emphasizing that such efforts are not in contradiction with international law. Meanwhile, Russia warns that these steps could cause significant disruptions to the global financial system and deepen economic divisions worldwide.