Moscow: Russia has issued a stern warning to the European Union over plans to use frozen Russian state assets for Ukraine, with Dmitry Medvedev, deputy chairman of Russia’s Security Council, describing the move as “tantamount to a justification for war.” The statement underscores the growing tensions between Moscow and Brussels over financial measures intended to support Kyiv amid the ongoing conflict.
The European Commission recently unveiled a proposal that would allow EU member states to leverage or partially utilize frozen Russian assets currently immobilized in European banks to raise approximately €90 billion (around US$105 billion) for Ukraine’s military and humanitarian needs. While the plan stops short of outright confiscation, it suggests using the funds as collateral or through new borrowing to provide immediate financial aid. EU officials frame this initiative as a “reparations loan” intended to strengthen Ukraine’s war effort and sustain its social services.
Medvedev, a key figure in Russian politics, reacted strongly to the proposal, accusing the EU of attempting to “steal” Russian sovereign funds. He warned that Moscow could treat such actions as a casus belli a cause for potential military retaliation. His comments signal that Russia perceives the plan not merely as a financial maneuver, but as a direct threat to its national sovereignty.
Previously, Russia’s parliament had also voiced strong opposition to the idea, threatening legal action and retaliation against any European states or institutions involved in the use of frozen assets. Analysts say that Moscow’s warnings reflect both political posturing and a genuine concern about the international precedent such a move could set.
The EU’s initiative has sparked significant debate among member states and legal experts. Some countries, hosting large portions of Russia’s frozen reserves, are cautious about the legal and financial implications of using these assets without formal Russian consent. Critics argue that forcing the use of frozen funds as reparations or collateral may contravene international law and property rights, potentially exposing European institutions to decades of litigation.
From Kyiv’s perspective, unlocking or leveraging Russian funds could provide critical support for military operations and civilian needs. However, the geopolitical stakes are high. Moscow has already indicated that any attempt to touch its assets could prompt retaliatory measures, including counter-seizures or broader diplomatic responses, raising the risk of further escalation in Europe.
The proposal comes at a sensitive moment in EU-Russia relations, highlighting the fragility of diplomacy amid ongoing conflicts. If the EU proceeds, it may deepen the rift with Moscow, potentially affecting international financial markets, diplomatic negotiations, and the broader stability of the continent. Observers note that the situation underscores the delicate balance between supporting Ukraine and avoiding direct confrontation with Russia.
As negotiations over the use of frozen assets continue, Medvedev’s warning serves as a stark reminder that financial strategies in international conflicts can carry consequences far beyond economic calculations, touching the very edges of security and global stability.