Moscow Threatens Retaliation Over EU’s Frozen Asset Plans

 

Russian service members attend a ceremony to receive new vehicles and military equipment handed over by the Russian movement "People's Front" for the military involved in Russia-Ukraine conflict.

Russia has issued a stark warning to European nations amid reports that the European Union is exploring ways to use billions of dollars in frozen Russian assets to support Ukraine’s defense. The assets, valued between $300–$350 billion, were blocked by the U.S., EU, and UK following Moscow’s 2022 invasion of Ukraine, and are largely held in European securities depositories.

European Commission President Ursula von der Leyen is reportedly considering a plan to channel cash from maturing Russian bonds held at the European Central Bank into a “Reparations Loan” for Ukraine.

Former Russian president Dmitry Medvedev, now deputy chairman of Russia’s Security Council, vowed that Moscow would pursue any EU state attempting to seize its property “until the end of the century,” using “all possible” legal and non-legal means. The Kremlin insists such moves amount to theft and would undermine global trust in Western currencies and bonds.

European leaders argue that Russia must be held financially accountable for the destruction caused in Ukraine, but some financial experts warn that seizing sovereign assets could set a dangerous precedent for global markets.