Europe’s use of frozen assets could be justification for war
The head of Russia’s security council warned on Thursday that if the European Union used seized frozen assets to support Ukraine it could amount to justification for war.
The European Commission, the EU’s executive arm, is exploring how to use frozen Russian assets held in Europe to further support Ukraine.
Dmitry Medvedev, deputy chairman of Russia’s Security Council, said in a comment posted on Telegram and translated by Google that the move could be tantamount to an act that justifies war.
“If a crazy European Union tries to steal Russian assets frozen in Belgium by giving so-called compensation loans, such actions could be classified under international law as a special kind of act of war, with all the consequences for Brussels and individual EU countries,” Medvedev said, referring to the Latin expression for an action that justifies war. he said.
Russia has said this before retaliates If the EU continues to use the frozen assets option.
The commission argued that this move was not theft, given that it would be a loan and Ukraine would only have to repay it if Russia paid compensation.
Russia and the European Commission did not immediately respond to CNBC’s request for comment.
$105 billion unlocked
The Commission on Wednesday proposed a “Compensation Loan” to Ukraine that would involve using cash from the balances of European financial institutions holding frozen Bank of Russia assets. He also suggested obtaining funds from international markets, offering member states an alternative to using Russian capital.
It plans to unlock 90 billion euros ($105 billion) for this effort, about two-thirds of the International Monetary Fund’s $136.5 billion estimate of Ukraine’s financing gap for 2026-2029.
“With Russia showing no signs of willingness to commit to a just and sustainable peace, the pressure on Ukraine’s resources continues to increase, making sustainable EU support even more vital,” the Commission said in a statement. he said.
So far, European countries have used profits from such assets to provide financial aid to Kiev, but some European leaders have expressed concerns about further measures due to possible financial and legal problems.
Russian President Vladimir Putin with US special envoy Steve Witkoff and US President Donald Trump’s son-in-law Jared Kushner during a meeting at the Kremlin aimed at finding a solution to end the Ukraine war in Moscow, Russia, on December 2, 2025.
Kremlin Press Office/Anadolu via Getty Images
Belgium has been particularly harsh on this issue, given that it is home to financial institution Euroclear, which owns the bulk of Russia’s state assets that have been frozen in Europe since Moscow’s full-scale invasion of Ukraine in 2022. He expressed concern about the legal consequences once the war is over and asked EU countries to commit to sharing responsibilities.
“If the EU chooses to borrow money to support Ukraine, that would require unanimity. If they choose to use frozen assets, then you can approve the plan by qualified majority,” an EU official, who asked not to be named due to the sensitivity of the issue, told CNBC.
Hungary opposes giving more cash to Ukraine, which poses an obstacle to achieving unanimity on the issue.
Another EU official, who asked not to be named due to the sensitivity of the talks, told CNBC: “By putting forward two solutions to fund Ukraine, the European Commission wants to show that the only alternative is much worse for many more member states.”
US presses for peace deal
It comes as peace negotiations continue. Rustam Umerov, head of Ukraine’s national security council, will meet with US special envoy Steve Witkoff in Miami on Thursday. Meanwhile, French President Emmanuel Macron is in Beijing on Thursday to meet with Chinese President Xi Jinping. The French leader is expected to call on his Chinese counterpart to cooperate more on the Ukraine solution.
Negotiations continue between Russia and the USA US President Donald Trump failed to make a breakthrough on Tuesday, although his son-in-law Jared Kushner said talks between Witkoff and Moscow were “pretty good.” per report.
It is not clear which peace plan was presented to the Russians after the first 28-article plan, prepared secretly by the USA and Russia, was presented to Ukraine a few weeks ago.
