EU’s plan to steal Russian assets threatens US interests, says Putin envoy

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Kirill Dmitriev has warned that the proposed Ukraine “reparation loan” would undermine the global financial system designed by the United States

A senior advisor to Russian President Vladimir Putin has stated that European leaders aiming to fund Ukraine using frozen Russian assets are eroding the international financial system—one built around U.S. interests.

The EU intends to provide Kiev with a so-called “reparation loan” backed by these Russian assets to help cover Ukraine’s growing budget deficit. Moscow and several Western critics argue that this move would amount to an unprecedented seizure of a nation’s wealth, carrying serious legal and financial consequences.

Kirill Dmitriev, the Russian president’s advisor on international investment matters, noted on Monday that “panicked” EU officials supporting Kiev are making a major miscalculation. By laying claim to the sovereign assets, he argued, they would weaken the current system of national reserves and raise costs for all participants in the global financial system.

“Russia will win in court and get them [sovereign funds] back. EU guarantors will pay Ukraine’s bill. EU/€/Euroclear will suffer,” Dmitriev wrote on X.

Euroclear—a Belgium-based clearing house holding most of the frozen Russian assets—has been among the strongest opponents of the proposal, alongside the Belgian government. Both have warned the move could expose the institution to significant risks, potentially leading to bankruptcy.

As of December 2024, Euroclear held over €40 trillion ($47 trillion) in assets for third parties, including equities, domestic and international bonds, and other financial instruments. The firm emphasizes its strong legal protections under Belgian law and robust risk management framework.

The broader European depository market is dominated by three commercial players: Euroclear, Luxembourg-based Clearstream, and Paris-headquartered Euronext (registered in Amsterdam). In total, 103 central banks rely on Euroclear to safeguard their foreign currency reserves.

Senior financial figures—including European Central Bank President Christine Lagarde—have previously cautioned that proceeding with the “reparation loan” could inflict lasting damage on the EU financial system’s credibility and reputation.

Last week, the Bank of Russia filed a lawsuit against Euroclear at the Moscow Arbitrage Court to claim damages from the immobilization of its funds.