Moscow Warns EU Against Utilizing Frozen Russian Assets to Fund Ukraines War Efforts

A proposal from the European Union to deploy frozen Russian funds to support Ukraine in its conflict with Russia carries «significant implications» for the EU, warned Moscow’s envoy to Germany on Friday.

This remark was made as EU leaders explore additional methods to support Ukraine, which is facing mounting challenges on the front lines.

Sergei Nechaev stated in a message to AFP that “any action involving sovereign Russian assets without Russia’s agreement amounts to theft.”

He further noted, “It is evident that seizing Russian state funds will have extensive repercussions.”

On Wednesday, the EU unveiled a strategy to utilize frozen Russian assets to assist Ukraine with a financial package of 90 billion euros over the next two years, despite resistance from Belgium, where a large portion of these assets is located.

Nechaev expressed that this “unprecedented move” could “harm the business credibility of the European Union and lead to an influx of legal disputes for European governments.”

“In effect, this paves the way for legal chaos and undermines the very pillars of the global financial system, with the EU bearing the brunt of it,” he pointed out.

He expressed confidence that such consequences are acknowledged in Brussels and Berlin.

As European leaders search for new strategies in light of U.S. President Donald Trump’s intentions to conclude the war on terms perceived as disadvantageous for Kyiv, they are exploring ways to finance a loan to Ukraine that would be repaid from any future reparations paid by Russia.

However, Belgium, which is home to Euroclear — the institution that manages most Russian assets — has thus far stood against the proposal due to possible legal challenges.

Nechaev indicated that this plan demonstrates Europe’s lack of the “substantial resources” necessary for ongoing support to Ukraine.

German Chancellor Friedrich Merz met with Belgian Prime Minister Bart De Wever and European Commission President Ursula von der Leyen in Brussels on Friday to discuss the initiative.

Following their meeting, Merz described it as a “very productive dialogue.”

He acknowledged that Belgium’s specific concerns regarding the usage of frozen Russian assets are significant and must be addressed in any potential solution, ensuring that all European nations face equal risks.

According to Merz’s spokesperson, Stefan Kornelius, the leaders agreed to “continue their discussions to achieve a unified resolution” ahead of their next summit on December 18 and 19.