Russia warns Europe against using frozen assets for Ukraine
Russia has warned European nations that it will retaliate "in all possible ways" if they attempt to use its frozen assets.
The warning follows reports that the European Union is exploring new ways to use the funds to support Ukraine.
Russian assets worth between $300bn and $350bn have been frozen since 2022, when the US and its allies banned transactions with Russia's Central Bank and Ministry of Finance following the invasion of Ukraine. The money mostly consists of government bonds held in Europe, the US, and the UK.
Reuters reported that European Commission President Ursula von der Leyen has proposed a formula for using the cash generated by these assets to fund Ukraine's defence.
Citing Politico, one option being considered is using Russian cash deposits at the European Central Bank from maturing bonds to back what is known as a "reparations loan."
Dmitry Medvedev, the former Russian president and current Deputy Chairman of Russia's Security Council, wrote on Telegram that Russia would pursue EU states "in all possible ways," through "all possible international and national courts," and "outside of court."
"If this happens, Russia will pursue EU states and what he called the 'European degenerates in Brussels' until the end of the century," Mr Medvedev said.
Earlier this month, Mr Medvedev also said Russia would seize more Ukrainian territory and target British property worldwide after London announced it had spent about $1.3bn of frozen Russian assets on weapons for Ukraine.
The Kremlin says any seizure of the assets would be "theft" and would undermine global trust in Western bonds and currencies. However, European nations insist Moscow must pay for the destruction caused by the bloodiest ground war in Europe since World War II.
Russia's state-run RIA news agency said Western direct foreign investment in Russia totals $285bn, which could be put at risk if Russian assets are confiscated. At the same time, some Western bankers have warned about the dangerous precedent such a measure would create, affecting the confidence of foreign sovereign entities in their investments in European and American government bonds.
Translation by Iurie Tataru
