Europe’s plan to use $105 billion of frozen Russian assets tantamount to war, says Russia’s Medvedev

Russia’s security council chief warned on Thursday that should the European Union use its seized frozen assets to support Ukraine, that could be tantamount to justification for war.  

The European Commission, the executive arm of the EU, has been looking at how to use frozen Russian assets held in Europe to further support Ukraine.

The move could be tantamount to an act justifying war, Dmitry Medvedev, deputy chairman of Russia’s Security Council, said in a comment posted to Telegram and translated by Google.

“If a frantic European Union attempts to steal Russian assets frozen in Belgium by issuing a so-called reparations loan, such actions could be classified under international law as a special kind of casus belli, with all the ensuing consequences for Brussels and individual EU countries,” Medvedev said, referring to the Latin phrasing for an act that justifies war.

Russia has previously said it would retaliate if the EU went ahead with using frozen assets option.

The Commission has argued that the move is not theft, given it would be a loan and Ukraine would only have to repay it if Russia pays reparations. 

Unlocking $105 billion

On Wednesday the Commission proposed a “Reparations Loan” for Ukraine which would involve using cash from the balances of European financial institutions holding frozen Russian Central Bank assets. It also proposed borrowing the funds from international markets, offering member states an alternative to using Russian capital.

Under the proposal to use the frozen assets, it plans to unlock 90 billion euros ($105 billion) for the effort, which is around two-thirds of the International Monetary Fund’s $136.5 billion estimation of Ukraine’s financing gap for 2026 to 2029.

“With Russia continuing to show no sign of willingness to commit to a just and sustainable peace, the strain on Ukraine’s resources continues to grow, making sustained EU support all the more vital,” the Commission said in a statement.  

So far, European countries have used the profits generated by such assets to financially aid Kyiv, but some European leaders have expressed concerns about further measures due to potential financial and legal issues.