Jens Asbjørn Bøgen
Firstly, Russia will take major legal action, but the retaliation won’t be confined to the court rooms.
Firstly, Russia will take major legal action, but the retaliation won’t be confined to the court rooms.
What is happening?
Russia issued a strong threat on Monday after reports emerged that the European Union is considering using frozen Russian assets to support Ukraine.
The assets, worth hundreds of billions of dollars, were blocked following Russia’s 2022 invasion of Ukraine.
$300 billion in frozen assets
After Russian troops entered Ukraine, Western nations froze between $300–$350 billion in Russian sovereign assets.
These funds include European, U.S., and British government bonds, largely held in a European securities depository.
Russia has since been locked out of its own reserves.
EU eyes new funding channels for Ukraine’s defense
European Commission President Ursula von der Leyen is reportedly exploring ways to use the interest and cash balances from frozen Russian assets to help finance Ukraine’s defense.
This could offer the EU a fresh source of long-term support amid mounting war costs.
‘Reparations loan’ being considered by EU Officials
Politico revealed that EU leaders are floating the idea of using proceeds from maturing Russian bonds stored at the European Central Bank to fund what’s being called a “Reparations Loan” for Ukraine.
This approach would avoid touching the principal—at least for now.
Medvedev’s threat: Legal and beyond
Former Russian President Dmitry Medvedev responded with a sharp threat, warning that Russia would pursue EU states “until the end of the century” if any attempt was made to seize its assets.
He promised action “in all possible international and national courts” as well as outside the legal system.
Russia labels seizure as ‘theft by the West’
Moscow insists that any seizure of its frozen funds would amount to outright theft.
Russian officials argue such a move would severely damage global trust in Western financial institutions, bonds, and currencies—potentially destabilizing markets.
Europe insists: Russia must pay
European leaders argue that Moscow is responsible for the war and must bear the costs.
With Ukraine devastated in the deadliest European conflict since WWII, calls for Russian reparations have grown louder across the continent.
Bankers raise caution over financial precedent
Despite political pressure, some financial leaders remain cautious.
They fear that setting a precedent for seizing sovereign assets could discourage other nations from investing in Western bonds, potentially weakening global financial stability.
Medvedev’s broader threats
In earlier remarks this month, Medvedev went further—vowing to capture more Ukrainian territory and target British-owned assets worldwide.
His comments followed the UK’s announcement that it had used $1.3 billion from frozen Russian funds to arm Ukraine.
Russia warns Western investments may be at risk
Russia’s RIA state news agency noted that Western nations hold $285 billion in direct investment inside Russia.
Should the EU proceed with asset seizures, these investments could be targeted in retaliation, escalating financial tensions even further.
This article is made and published by Jens Asbjørn Bogen, which may have used AI in the preparation
