Kathrine Frich
As the European Union moves forward with a major financing plan for Ukraine, the Kremlin is signalling retaliation.
Economic pressure has long been a central tool in the conflict between Russia and the West, and now the dispute over frozen Russian assets has sparked a new round of threats from Moscow.
Russian President Vladimir Putin said his government is preparing countermeasures if Brussels uses the financial value of frozen Russian holdings to support a multibillion-euro loan for Kyiv.
Threat of retaliation
Speaking at a press conference in Bishkek, Kyrgyzstan, Putin said the EU’s proposal would be equivalent to “theft of someone else’s property,” according to Politico.
He told reporters that the Russian government, “at my direction,” is developing a package of reciprocal steps should the plan proceed.
Putin argued that using the assets would damage Europe’s credibility in global markets.
“It is clear that this will have a negative impact on the international financial system,” he said, adding that confidence in the eurozone “will fall sharply.”
European concerns
The EU is weighing a €140 billion loan for Ukraine’s defence, with funding linked to revenue generated by frozen Russian assets held by Euroclear in Brussels.
European Commission officials stress that the move does not involve seizing the assets outright.
Instead, the plan would see the EU borrowing money from Euroclear and then transferring the funds to Kyiv.
Belgium has expressed reservations, citing potential Russian retaliation.
Economic warning
Putin also predicted Europe would face a “difficult” economic period, pointing in particular to Germany, which he claimed has been “in recession for the third year in a row.”
He argued that the EU’s willingness to rely on frozen assets signals financial instability.
European leaders see the loan as essential for sustaining Ukrainian resistance, especially as winter approaches.
Commission President Ursula von der Leyen said the draft legal text for the plan will be presented soon.
Sources: Politico, Digi24
