Funding Kyiv with Russian assets… Europe seeks a risk balance as Moscow issues warnings

As European Union leaders push to use frozen Russian assets to finance Ukraine in its war against Moscow, the latter has warned of “far-reaching consequences” for the bloc.

Russia’s ambassador to Germany, Sergey Nechayev, stated that “any action involving Russian sovereign assets without Russia’s consent is theft. It is also clear that the seizure of Russian state funds will entail far-reaching consequences.”

The European Union revealed on Wednesday a plan to use frozen Russian assets to help finance Ukraine with 90 billion euros over the next two years, despite Belgium’s opposition, where the largest share of the assets is frozen.

But Nechayev said that this “unprecedented step” would “destroy the EU’s commercial credibility and plunge European governments into endless lawsuits.”

Legal chaos?

He added: “In reality, this is a path toward legal chaos and the dismantling of the foundations of the global financial system, which will primarily harm the EU.” The Russian diplomat continued: “We are confident that this is understood in Brussels and Berlin.”

EU leaders have pledged to continue supporting Ukraine as military pressure intensifies, along with pressure from US President Donald Trump, who seeks to end the war through a settlement they consider unfavorable to Kyiv. They are exploring ways to finance a loan for Ukraine, which the proposal suggests would be repaid through future Russian compensation to Ukraine.

Belgium, home to the headquarters of the financial services group Euroclear, which manages most Russian assets, continues to reject the plan, fearing possible legal repercussions.

Equal risks

German Chancellor Friedrich Merz met with his Belgian counterpart Bart De Wever and European Commission President Ursula von der Leyen on Friday evening to discuss the proposal. In a statement after the meeting, Merz described the discussion as “constructive.”

He added that “Belgium’s specific concerns regarding the use of frozen Russian assets are undeniable and must be addressed in any conceivable solution in such a way that all European states bear the same level of risk.”

Stefan Kornelius, Merz’s spokesperson, said the leaders agreed to “continue their discussions with the aim of finding a joint solution” ahead of their next summit on December 18–19.

Nechayev nevertheless argued that the plan shows Europe lacks the “necessary resources” to continue supporting Ukraine.