Moscow issued a stark warning to European nations on Monday, threatening to take action against any country that attempts to seize Russian assets amid reports that the European Union is weighing the use of billions of dollars in frozen Russian assets to support Ukraine, reports 24brussels.
In the wake of Russia’s ongoing conflict with Ukraine, the US and its allies have imposed sanctions that include freezing between $300 billion and $350 billion of Russia’s sovereign assets, primarily government bonds held in European securities depositories. The move aims to pressure Russia financially, following its military aggression in Ukraine that escalated in 2022.
Former Russian president Dmitry Medvedev, now the deputy chairman of Russia’s Security Council, claimed that any seizure of these assets would constitute a form of theft by Western nations and would undermine trust in both US and European financial instruments. “If this happens, Russia will pursue the EU states, as well as European degenerates from Brussels and individual EU countries who try to seize our property, until the end of the century,” he stated on Telegram.
Medvedev also emphasized that Russia is prepared to take legal action against European countries in “all possible ways” and in both international and national courts, asserting its intent to pursue justice out of court as well. This declaration reflects the Kremlin’s broader strategy to maintain its financial claims amid increasing sanctions.
What is the proposed European Commission reparations loan for Ukraine?
Amid these tensions, the EU finds itself contemplating a new financial mechanism to bolster Ukraine’s defense against ongoing Russian aggression. European Commission President Ursula von der Leyen has suggested using frozen Russian assets as a funding source for what is termed a “Reparations Loan” for Ukraine. This initiative aims to address Ukraine’s urgent need for support and stabilization.
According to reports from Politico, the European Commission is evaluating the feasibility of leveraging Russian cash reserves held at the European Central Bank from maturing bonds to finance this initiative. Currently, European nations have approximately €210 billion in Russian sovereign assets frozen as part of a broader sanctions regime aimed at curbing Russia’s military capabilities and financial power.
This significant amount is distinct from private assets, which include approximately $58 billion in oligarch wealth frozen earlier in 2023, indicating the scale of state-held assets involved in the EU’s strategy against Russia. These holdings remain a critical component of the sanctions implemented by the EU and its allies, reinforcing the financial pressure on Russia within the context of the ongoing war in Ukraine.
