Kremlin vows response to EU’s expropriation of Russian assets

The transfer to Ukraine of €1.5 billion in proceeds from frozen funds will not go unanswered, Dmitry Peskov has said

Kremlin spokesman Dmitry Peskov has warned that Russia will retaliate against the West for its expropriation of the country’s sovereign assets.

On Friday, European Commission President Ursula von der Leyen wrote on X (formerly Twitter) that the EU would transfer €1.5 billion ($1.6 billion) in proceeds from frozen Russian assets to Kiev for the “defense and reconstruction of Ukraine.”

Commenting to reporters, Peskov said on Friday that the “illegal” actions would receive a “well-thought-out” response, fully consistent with the interests of Russia.

“Of course, such steps by the European Commission will not go unanswered,” the Kremlin spokesman said.

The West froze nearly $300 billion in assets belonging to the Central Bank of Russia shortly after the escalation of the Ukraine conflict in 2022. Most of the immobilized funds are being held in the EU’s largest depository and clearing house, Euroclear.

In May, Brussels approved a plan to use the interest earned on the frozen assets to support Ukraine’s recovery and defense. Under the agreement, 90% of the proceeds are expected to go into an EU-run fund for Ukrainian military aid, with the other 10% allocated to supporting Kiev in other ways.

Last month, the Group of Seven nations also reached an agreement to use the interest earned on frozen Russian funds to finance a $50 billion loan to help Kiev buy arms and rebuild damaged infrastructure.

This week, the EU announced that it would start sending the interest earned on the frozen Russian money to Ukraine.

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EU moves to freeze Russian assets indefinitely – FT

Moscow has repeatedly said that military assistance to Kiev only prolongs the conflict. The Russian government has also said that any steps taken to transfer its assets without its consent would amount to “theft,” insisting that tapping the funds or engaging in similar moves would violate international law and lead to retaliation.

Peskov commented earlier this year that the expropriation of sovereign Russian assets could create a dangerous precedent and become a “solid nail in the coffin” of the Western economic system. He said Moscow would inevitably retaliate by launching legal proceedings against entities that do so.

Russian authorities previously highlighted that lawsuits over immobilized Russian funds are underway in many countries, with some cases achieving success.