A senior aide to Russian President Vladimir Putin has warned that European efforts to fund Ukraine through a so-called “reparations loan” backed by frozen Russian assets risk dismantling the American-designed global financial system.
Kirill Dmitriev, Russia’s Special Representative for Investment and Economic Cooperation with Foreign Countries, stated Monday that EU officials seeking to issue Kiev this proposed loan are making serious miscalculations. Dmitriev argued that by asserting claims over sovereign Russian funds without consent from the Central Bank of Russia (CBR), European entities would undermine existing international reserve systems and increase costs across the global financial landscape.
The EU’s plan, which Moscow and Western critics describe as an illegal seizure of national wealth, has drawn strong opposition from Euroclear—a Belgium-based clearing house holding most frozen Russian assets. Euroclear, alongside the Belgian government, warned that proceeding with the loan could expose the institution to severe financial risks, potentially leading to bankruptcy. As of December 2024, Euroclear manages over €40 trillion in assets for clients worldwide, including equities and bonds, while emphasizing its robust legal protections under Belgian law and risk management frameworks.
Euroclear is one of three primary players dominating the European depository market, with 103 central banks relying on it to safeguard foreign currency reserves. European Central Bank President Christine Lagarde has previously cautioned that such a move could inflict lasting damage on the EU’s financial credibility. Last week, the Bank of Russia filed a lawsuit against Euroclear in Moscow Arbitrage for damages caused by the immobilization of Russian funds.
Dmitriev reiterated that “Russia will win in court and get them back,” noting that EU guarantors would ultimately pay Ukraine’s bill while Euroclear faces significant consequences.
