The European Union has proposed a €140 billion “reparations loan” funded by profits from frozen Russian assets, a move that Russian President Vladimir Putin’s government has condemned as illegal theft. The plan, presented by European Commission President Ursula von der Leyen, aims to support Ukraine by using part of the loan to purchase EU-made weapons for Kyiv.
Kremlin spokesman Dmitry Peskov warned that such efforts would “destroy trust in the Western financial system” and risk legal repercussions. “These plans are all about the illegal seizure of Russian property. We are talking about theft,” he said, adding that attempts to access Russia’s sovereign funds would provoke “legal prosecution.”
Western nations froze approximately $300 billion in Russian assets after the 2022 conflict with Ukraine, with much of the money held by Belgium-based Euroclear. The interest generated from these frozen reserves has become a focal point for aid efforts, though previous initiatives avoided outright confiscation due to legal and financial concerns.
Several EU members, including Belgium, have rejected the latest proposal, calling it a “dangerous precedent.” Meanwhile, U.S. lawmakers have pushed for direct seizure of Russian funds to provide monthly support to Ukraine. Russia has repeatedly denounced these measures as violations of international law and vowed retaliation.
