The Kremlin warned on Wednesday that it will act against countries or individuals who try to use $165 billion of Russian assets for Ukraine. This warning came after European leaders held a meeting to discuss lending the amount to Kyiv.

Kremlin spokesman Dmitri S. Peskov argued that there is no difference between seizing the assets and using them as collateral. “We are talking about theft,” he told reporters.

Europe Looks for Funds to Support Kyiv

Meanwhile, US military aid for Ukraine is ending. At the same time, many EU governments face fiscal pressures. Therefore, the European Commission has suggested using frozen Russian central bank securities to support Kyiv in 2026 and 2027.

European Commission President Ursula von der Leyen defended the plan. “We need a more structural solution for military support. This is why I have put forward the idea of a reparations loan that is based on the immobilised Russian assets,” she said.

Furthermore, she explained that the loan would be released in stages and would not directly confiscate Russian assets. In fact, the Group of Seven (G7) has already given Ukraine a loan using interest from frozen Russian assets.

As a result, Ukraine would only repay the loan once Russia pays war reparations. This means Kyiv could access funds immediately rather than wait until Moscow pays.

Moscow Prepares Countermoves

However, Russia has firmly rejected Europe’s plan. Dmitri A. Medvedev, deputy chairman of the Russian national security council, warned, “We will go after the Europeans in all possible international and national courts, and in some cases, even out of court.”

In addition, President Vladimir Putin signed a decree on Tuesday to speed up the redistribution of assets inside Russia. Analysts told the New York Times that Moscow may retaliate by seizing the assets of foreign companies and individuals from nations backing the loan.

Billions Already Frozen

Back in 2022, Western countries froze nearly $300 billion of Russian sovereign assets. Most of these funds remain in the EU and the UK. Together, they account for almost half of the Russian Central Bank’s gold and foreign currency reserves. Importantly, the freeze came soon after Russia launched its full-scale invasion of Ukraine.