Putin warns of retaliation if EU uses frozen Russian assets to fund Ukraine – Firstpost

Russian President Vladimir Putin warned on Thursday that Moscow is preparing to retaliate if the European Union presses ahead with a plan to use the cash value of frozen Russian assets to finance a €140 billion compensation loan for Ukraine.

according to a politico Speaking at a press briefing in Bishkek, Putin said, “The Government of the Russian Federation, in accordance with my charge, develops a package of countermeasures in case this happens,” Putin said, according to the report.

He condemned the EU’s proposal as “theft of someone else’s property” and argued that such a move would damage Europe’s credibility on the global stage.

“It is clear that this will have a negative impact on the international financial system,” Putin was quoted as saying.

“Confidence in the eurozone will diminish, collapse suddenly,” he said.

Putin also warned that Europe could face “discomfort” [economic] Test,” noting that Germany – the continent’s largest economy – “is in recession for the third year running.”

The European Commission has repeatedly stressed that the plan would not involve freezing Russian assets currently held in the Brussels-based financial depository Euroclear.

The arrangement, which has raised concerns in Belgium over potential Russian retaliation, would instead allow the EU to borrow against the profits generated from the frozen funds and transfer the money to Kiev for its own defense.

Commission President Ursula von der Leyen said on Wednesday that the draft legal text for the €140 billion loan would be presented “very soon”.

with inputs from agencies