Russia vows 'painful response' if EU confiscates Russian assets

BRUSSELS: Russia said on Thursday (October 23 ) it will deliver a "painful response" to any move by the European Union to seize its frozen assets.

AI Brief

EU leaders are planning a EUR140 billion loan for Ukraine using frozen Russian assets, without confiscating them outright.
Russia condemned the move as illegal and warned of reciprocal actions, saying it damages trust in European financial institutions.
Moscow urged caution, claiming Europe is no longer a safe place to hold assets and that such actions hurt its prestige and interests.

The warning came as EU leaders met in Brussels to discuss a plan to use the assets as the basis for a 140 billion euro ($163 billion) "reparations loan" to Ukraine.

"Any actions with Russian assets without Russia's consent are null and void from the standpoint of international and contract law. There is no legal way to take someone else's funds without hurting the pockets and prestige of those who expropriate them," Russian Foreign Ministry spokeswoman Maria Zakharova told reporters.

"Any confiscatory initiatives from Brussels will inevitably result in a painful response. We will act in full compliance with the principle of reciprocity in international relations, based on our own interests and the need to compensate for the damage caused to Russia."

Under the EU plan, the Russian assets would not be confiscated, as Russia would retain its claim on the money held in Belgian securities depository Euroclear.

But Zakharova said the scheme showed that Europe was "no longer a safe haven for financial assets."

She added: "Trusting Western Europeans, including Euroclear, with your funds now risks their complete loss. We urge you to think twice before taking reckless actions."