Russia Warns Europe Not To Confiscate Frozen Assets

Russia has warned the European Union that it will retaliate with countermeasures if the EU decides to use frozen Russian assets to help Ukraine. The threat comes as EU leaders ponder how to make use of the assets, with a myriad of legal and political risks surrounding the debate.



Following Russia’s invasion of Ukraine in 2022, Western countries froze Russian bank accounts, real estate properties, stocks, bonds, luxury assets, and various investments held by Russian entities and oligarchs. The funds also involve around €275 billion in central bank assets across the EU, the United States, Japan and Canada. The biggest share of these assets, €210 billion, is held within the EU.



The 27-member bloc has been deliberating how to make use of these funds, but critics say all proposed options risk violating international law and damaging the financial credibility of the EU. After the U.S. House of Representatives on Saturday adopted a bill that would allow the confiscation of Russian sovereign assets, the issue has come to the forefront in Europe.



Speaker of the Russian upper house Valentina Matviyenko warned Europe on Tuesday that Russia would retaliate with its own law if the EU were to confiscate Russian state assets. “We have a draft law, which we are ready to consider immediately, on retaliatory measures,” she said. “And the Europeans will lose more than we do.”