The European Union has transferred 4 billion euros ($4.7 billion) to Ukraine using frozen Russian assets, marking one of the largest financial injections since the conflict began. The funds, announced by Ukraine's Ministry of Finance on Wednesday, come as the EU explores a controversial "reparation loan" plan tied to immobilized Russian Central Bank assets held in Europe.
Kremlin spokesperson Dmitry Peskov condemned the move, calling it "theft" and warning that Russia would pursue legal action against individuals and countries involved. "Persons involved will be prosecuted… they will all be called to account," Peskov stated, arguing the seizure undermines trust in the eurozone's financial systems.
The EU's proposed 140 billion euro loan scheme—backed by Russian assets in Euroclear—faces hurdles as Belgium and ECB President Christine Lagarde warn of long-term risks. Lagarde cautioned that confiscating state-immune assets could deter global central banks from holding euro reserves, potentially weakening the currency's international standing.
Meanwhile, EU Commission President Ursula von der Leyen announced an additional 2 billion euro package for drone production in Ukraine, bringing total EU support to nearly 178 billion euros since February 2022. The bloc remains Kyiv's largest donor despite growing concerns about legal and economic fallout from asset seizures.
