Moscow (Brussels Morning Newspaper) – Dmitry Medvedev, the deputy chairman of Russia’s Security Council, stated on Thursday that if the European Union seizes frozen Russian assets, Moscow might view it as an act equivalent to justifying war.
“If the crazy European Union does, after all, try to steal Russian assets frozen in Belgium under the guise of a so-called ‘reparations loan’, Russia may well view this move as tantamount to a casus belli with all the relevant implications for Brussels and individual EU countries,”
Medvedev said.
On Wednesday, the European Commission proposed an unprecedented approach: using frozen Russian assets or international borrowing to raise 90 billion euros for Ukraine, aiming to support its military and basic services amidst the ongoing war with Russia.
The European Union’s executive body has declared it favours a “reparations loan” using Russian state assets immobilised in the EU due to Russia’s invasion of Ukraine.
Does von der Leyen’s proposal increase pressure on Moscow?
“We are proposing to cover two-thirds of Ukraine’s financing needs for the next two years. That’s 90 billion euros. The remainder would be for international partners to cover,”
Commission President Ursula von der Leyen told reporters.
“Since pressure is the only language the Kremlin responds to, we can also dial it up,”
she said.
“We have to increase the costs of war for (Russian President Vladimir) Putin’s aggression and today’s proposal gives us the means to do this.”
How serious is Moscow’s threat of asset seizures?
In September, Russia warned European countries, stating that it would pursue any nation attempting to seize its assets. Moscow asserts that confiscating its assets would amount to theft by the West and could undermine trust in the bonds and currencies of the US and Europe.
“If this happens, Russia will pursue the EU states, as well as European degenerates from Brussels and individual EU countries who try to seize our property, until the end of the century,”
Medvedev said.
Medvedev stated that Russia will pursue European states through “all possible ways,” including “all relevant international and national courts” and “out of court.”
What is the proposed European Commission reparations loan for Ukraine?
Earlier, European Commission President Ursula von der Leyen called for the EU to develop a new way to finance Ukraine’s defence against Russia, using the cash reserves linked to Russian assets that are frozen in Europe.
By 2025, European countries will have frozen around €210 billion in Russian sovereign assets. These assets are distinct from private Russian wealth or oligarch assets, which totalled about $58 billion in frozen property at the beginning of 2023. This private wealth is significantly smaller—by approximately an order of magnitude—than the assets held by the state.
The EU and its allies keep these holdings under a sanctions regime, which is part of the broader sanctions and financial pressure strategy on Russia related to the war in Ukraine.
