Putin says EU will have to return frozen Russian assets

Dec 20, 2025 at 01:18 PM

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Lanka Leader

Russian President Vladimir Putin has said the European Union will eventually be forced to return Russian sovereign assets frozen under sanctions related to the Ukraine conflict, warning that any attempt to use the funds would damage the bloc’s reputation and undermine the global financial system.

Western countries froze about $300 billion in Russian central bank assets in 2022, most of which are held by Belgium-based financial services company Euroclear. The EU has debated using the funds as collateral for a loan to Ukraine and last week approved legislation to keep the assets frozen indefinitely. However, EU leaders failed to agree on the loan plan, opting instead for short-term funding for Kiev while technical issues are reviewed.

Speaking during an end-of-year televised question-and-answer session on Friday, Putin said any use of the assets would amount to theft and would carry long-term consequences. He argued that EU countries would ultimately bear financial and reputational costs and would be required to repay the funds.

Putin also warned that using the assets as collateral would increase public debt in EU member states, placing additional strain on national budgets already under pressure. He cited high debt levels and budget deficits in several countries, including France, as examples of the risks involved.

Russia has repeatedly condemned the asset freeze and last week filed a lawsuit in Moscow against Euroclear, seeking damages related to its inability to manage the frozen funds. The Central Bank of Russia has said it plans to expand the case to include European banks holding the assets.

The first court hearing is scheduled for January 16. Russian media report the claims could amount to nearly 18.2 trillion rubles (about $230 billion). The EU has dismissed the lawsuit as speculative, while some analysts warn the case could affect confidence in European financial institutions if it expands further.