Putin on Russia’s frozen assets for Ukraine: "This is robbery, so consequences will be severe"
During a live broadcast, Russian dictator Vladimir Putin called the European Union's attempts to unfreeze Russia's frozen assets to provide aid to Ukraine "robbery."
This information was reported by Censor.NET with reference to the broadcast of the press conference.
"Theft is not the right word. Theft is the secret removal of property, but they are trying to do it openly. It's robbery. But why can't they carry out this robbery? Because the consequences could be serious for the robbers. First, it's not easy to do. They have announced that they won't just take it away. One idea is to issue a reparations loan secured by our assets. And what does issuing a loan mean? It means consequences for the budget," Putin said.
He clarified that this refers to a "reparation loan" secured by Russian assets, which, according to him, will lead to an increase in budget debt and damage the image of the European Union. Putin noted that the use of assets will undermine confidence in the eurozone, where many countries keep their gold and foreign exchange reserves.
At the same time, the Russian dictator stated that frozen assets "will have to be returned at some point" and that Russia will "defend its interests" in court.
What is known about the "reparations loan" for Ukraine
- We would like to remind you that at a meeting in October, EU leaders postponed a decision on the use of frozen Russian assets as collateral for a so-called "reparations loan" for Ukraine in the amount of €140 billion ($163 billion). EU leaders plan to return to discussing this issue at a meeting on December 18-19.
- Belgium, where the lion's share of these funds is held, opposed the European Commission's proposed plan to use frozen Russian assets at a meeting of EU leaders. The country fears legal and financial sanctions from Moscow and wants other EU countries to share these risks.
- Earlier, European Commission President Ursula von der Leyen proposed using frozen Russian assets as collateral for providing Ukraine with "reparation loans". Formally, Russian assets subject to sanctions will not be confiscated, but Ukraine will repay such loans only after Russia pays reparations.
- In turn, Russian dictator Putin responded by signing a decree that effectively allows for the accelerated expropriation of assets belonging to Western companies that have not yet left Russia.
- According to various estimates, the European Union's "reparation loan" to Ukraine, secured by Russian assets, could amount to €130-140 billion. Its final size will be determined after the International Monetary Fund assesses Ukraine's financing needs in 2026 and 2027.
- In total, Euroclear has accumulated more than €175 billion in cash from frozen Russian assets, which could be used to secure a new loan. But before the EU agrees to grant a reparations loan, it will want to repay the G7 loan to Ukraine of €45 billion ($50 billion) agreed last year, which was to be repaid from the proceeds of frozen Russian assets.
What preceded it?
- On Thursday, December 18, European Union leaders failed to reach an agreement on the use of frozen Russian assets to finance Ukraine.
- According to DW, Belgium, Hungary, Slovakia, Italy, Bulgaria, Malta, and the Czech Republic opposed the proposed mechanism.
- Subsequently, the EU decided to provide Ukraine with €90 billion in 2026–2027 to support the country's economy, defense, and stability.
