Kremlin realizes EU split over Russian asset seizure
(MENAFN) The Kremlin has acknowledged growing divisions within the European Union regarding the possible seizure of frozen Russian assets, with some EU member states expressing strong legal concerns over the move. Kremlin spokesman Dmitry Peskov commented on Thursday that Moscow is aware certain countries in the bloc oppose the idea, recognizing the potential legal consequences.
Following the escalation of the conflict in Ukraine in early 2022, Western nations froze approximately $300 billion in Russian sovereign assets, with around €200 billion ($209 billion) held by Euroclear, a Brussels-based financial clearing house. EU foreign policy chief Kaja Kallas has been a vocal proponent of using these funds to support Ukraine’s recovery.
Kallas recently admitted that some EU members remain resistant to the plan, though she declined to name specific nations. Peskov reiterated Russia’s position that any seizure of these assets would amount to theft and warned of possible retaliatory actions against Western investments in Russia.
Although the funds remain frozen, they have generated significant interest revenue. Euroclear transferred €1.55 billion in interest to Ukraine last July to help back a $50 billion G7 loan package.
Support for transferring the frozen funds directly to Ukraine has come from countries like Poland, the Baltic states, the Nordic nations, and the Czech Republic. In contrast, larger EU powers such as France, Germany, Italy, and Spain—as well as European Commission President Ursula von der Leyen—have adopted a more cautious stance. They argue that the funds could serve as future leverage and warn of the legal implications of outright confiscation.
Belgian Prime Minister Bart De Wever even described such a move as potentially being seen as "an act of war," cautioning it could provoke a strong response from Moscow. Other EU officials and financial experts, including the International Monetary Fund, have warned that seizing state assets without a solid legal foundation could set a troubling precedent and damage global trust in Western financial institutions.
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