Russia Threatens Asset Seizures Amid EU Frozen Funds Dispute

A general view shows the headquarters of the lower house of Russia's parliament, State Duma, in central Moscow, Russia, July 22, 2025

Russia has issued its strongest warning yet against the European Union’s plan to use frozen Russian assets to support Ukraine. On Thursday, the State Duma, Russia’s lower house of parliament, passed a resolution declaring that if the EU proceeds with its proposal to channel billions in frozen Russian funds into a loan for Kyiv, Moscow will retaliate by seizing the assets of investors from “unfriendly states.”

Lawmakers described the EU’s initiative as “an illegal seizure of property” and equated it to outright theft. The resolution emphasized that any such move would trigger legal action against Belgium and Euroclear, the securities depository where much of Russia’s frozen wealth is held. Russia’s parliament also signaled that retaliatory measures could extend beyond lawsuits, including the confiscation of foreign-owned assets inside Russia.

The EU’s plan has been under debate for months, with supporters arguing that frozen Russian reserves should be used to help Ukraine rebuild and resist further aggression. However, critics warn that such a precedent could destabilize global financial systems and undermine investor confidence. Moscow’s latest threat underscores the escalating economic standoff between Russia and the West, as sanctions continue to bite and both sides explore increasingly aggressive countermeasures.

This development highlights the growing risk for foreign investors with exposure to Russia. If the EU moves forward, Moscow’s retaliatory asset seizures could deepen the financial fallout and further isolate Russia from international markets.