On Thursday, Russian President Vladimir Putin cautioned that Moscow is preparing retaliatory measures should the European Union proceed with its plans to utilize the cash value of frozen Russian assets to finance a €140 billion reparations loan for Ukraine.
As reported by Politico, during a press briefing in Bishkek, Putin stated, “The government of the Russian Federation, under my directive, is developing a set of reciprocal actions in the event that this occurs.”
He condemned the EU’s proposal as “theft of someone else’s property,” asserting that such an action would undermine Europe’s credibility on the international stage.
“It is evident that this will adversely affect the international financial system,” Putin was quoted as saying.
“Trust in the eurozone will diminish, experiencing a sharp decline,” he further remarked.
Putin also cautioned that Europe might encounter “a challenging [economic] test,” highlighting that Germany — the largest economy on the continent — “has been in recession for the third consecutive year.”
The European Commission has consistently emphasized that the plan would not entail the confiscation of Russian assets currently held at Euroclear, the financial depository based in Brussels.
This arrangement, which has raised concerns in Belgium regarding potential Russian retaliation, would instead permit the EU to borrow against the profits generated from the frozen assets and allocate the funds to Kyiv for its defense.
Commission President Ursula von der Leyen announced on Wednesday that the draft legal text for the €140 billion loan would be presented “very soon.”
