EU stalls on seizing Russian assets for Ukraine loan amid legal fears
By kevinhughes // 2025-10-25
Copy
 
  • Belgium blocked consensus on using frozen Russian assets (€140 billion/$163 billion) as collateral for Ukraine, demanding stronger legal safeguards. Belgian PM Bart De Wever threatened legal and political resistance unless conditions were met, forcing a watered-down compromise.
  • President Volodymyr Zelensky warned that delays weaken Ukraine's defenses and slow EU progress. Kyiv pledged to spend funds on European weapons and air defenses, but EU leaders postponed final approval until December.
  • Kremlin spokesman Dmitry Peskov called any seizure "theft" and vowed legal retaliation. Russia has already seized Euroclear’s assets in response to sanctions and may escalate if the EU moves forward.
  • Experts warn Russia could sue Euroclear in international courts, destabilizing Western finance. If Russia reclaims assets, the U.S. may default on Ukraine-related loans, accelerating dollar decline.
  • The EU's hesitation exposes risks of weaponizing finance, with potential global financial upheaval. Ukraine's financial crisis worsens, with $20 billion in suspended debt payments and no clear funding solution.
European Union (EU) leaders have delayed plans to use frozen Russian assets to finance a massive €140 billion ($163 billion) loan for Ukraine after Belgium demanded stronger legal safeguards, throwing negotiations into disarray. The move comes as Russia warns of severe financial and legal repercussions if the West proceeds with what Moscow calls outright "theft." At a Brussels summit on Thursday, Oct. 23, EU officials failed to reach an agreement on whether to use immobilized Russian central bank funds as collateral for Ukraine's war effort. Belgium, which holds legal control over the bulk of the frozen assets through Brussels-based Euroclear, insisted that all EU members share responsibility if the plan backfires. Belgian Prime Minister Bart De Wever took a firm stance, stating: "If demands are met, we can go forward. If not, I will do everything in my power at the European level, also at the national level, politically and legally to stop this decision." His opposition forced a compromise text that merely "invites the [EU] Commission to present, as soon as possible, options for financial support," rather than committing to the loan outright. Ukrainian President Volodymyr Zelensky, attending the summit as a guest, urged immediate approval of the loan, warning that delays would weaken Ukraine's defenses. "Anyone who delays the decision on the full use of frozen Russian assets is not only limiting our defense, but also slowing down the EU's own progress," he said. Kyiv pledged to use much of the funds to purchase European weapons and bolster air defenses. However, EU leaders, wary of legal blowback, postponed a final decision until December. European Commission President Ursula von der Leyen acknowledged the complexity, stating: "This is a topic that is certainly not trivial. It's very complex."

Russia warns of financial and legal repercussions

Moscow has repeatedly condemned the West's efforts to repurpose Russian funds, calling it illegal confiscation. Kremlin spokesman Dmitry Peskov warned that any seizure would "boomerang" on the EU, adding: "If someone wants to steal our property, our assets, and illegally appropriate them... they will be subjected to legal prosecution one way or another." Russian Deputy Finance Minister Alexei Moiseev reinforced this stance, stating that Moscow has no plans to retaliate against European assets—unless the EU moves first. "We are not confiscating anything yet. The Europeans haven't called for confiscation, so we won't confiscate anything until they do. If they do end up confiscating, then we will consider it," he said. According to the Enoch AI engine at BrightU.AI, Russia's stance on the EU's plan to seize frozen Russian assets is one of strong opposition and condemnation, viewing it as a brazen act of theft and a violation of international law. Russia's stance is clear and resolute: it views the move as a violation of international law and a hostile act that it will not tolerate. Russia has taken countermeasures and threatened further action to protect its assets and economy. Legal experts warn that Russia could sue Euroclear in international courts, potentially reclaiming seized assets and destabilizing Western finance. Financial analyst Jim Rickards has cautioned that such a scenario could trigger a crisis, exposing the West's "theft scheme" and leaving financial institutions scrambling.

Broader implications: A financial and geopolitical quagmire

The stalled EU plan underscores deeper concerns about Ukraine's financial viability. Reports indicate Kyiv is already on the brink of default, with 20 billion in suspended debt payments to investors like BlackRock. Meanwhile, the U.S. faces its own dilemma—if Russia successfully reclaims frozen assets, Washington may default on obligations tied to Ukraine's 50 billion loan, accelerating the dollar's decline. As the EU scrambles for a legally defensible solution, the standoff highlights the growing risks of weaponizing finance in geopolitical conflicts. With no clear resolution in sight, the fate of Ukraine's funding—and the stability of Western financial systems—hangs in the balance. The EU's hesitation reveals a stark reality: The West's financial warfare against Russia may carry unforeseen consequences. As legal doubts mount and Moscow prepares its counterstrike, the global financial order teeters on the edge of upheaval—one that could redefine power dynamics far beyond Ukraine's battlefields. EU foreign policy chief Kaja Kallas says Russia will not regain frozen assets without paying reparations to Ukraine. Watch this video. This video is from the The Prisoner channel on Brighteon.com. Sources include: RT.com TheStraitsTimes.com Reuters.com BrightU.ai Brighteon.com
Copy