MOSCOW/BRUSSELS – The European Union’s plan to raise €90 billion for Ukraine by leveraging frozen Russian central bank assets has provoked a furious response from Moscow, with former Russian President Dmitry Medvedev declaring the move would be considered a casus belli – an act justifying war.
Medvedev, now deputy chairman of Russia’s Security Council, issued the stark warning on social media platform X, stating that if the “crazy European Union” tries to “steal Russian assets frozen in Belgium,” Russia would view it as tantamount to a declaration of war “with all the relevant implications for Brussels and individual EU countries.”
The threat escalates the diplomatic standoff over a bold proposal unveiled on Wednesday by European Commission President Ursula von der Leyen. The plan would use over €120 billion in immobilized Russian state assets, most held by the Brussels-based clearinghouse Euroclear, as collateral for a “reparations loan” to Kyiv.
Von der Leyen argued the scheme would cover two-thirds of Ukraine’s estimated funding needs for its war effort, allowing it to “defend itself and take forward peace negotiations from a position of strength.” She insisted the proposal, which she said had U.S. support, was necessary because “pressure is the only language the Kremlin responds to.”
However, the plan faces significant hurdles, both legal and diplomatic. Belgium, where the bulk of the assets are held, has voiced strong reservations. A senior Belgian official told Reuters the country “cannot accept being asked to bear the risks of such an operation alone,” citing concerns over legal challenges and potential retaliation.
The EU Commission claims to have addressed most Belgian concerns, arguing the scheme does not constitute confiscation, as Ukraine would only repay the loan if and when Russia pays war reparations. The proposal requires a qualified majority vote from EU member states to proceed.
Medvedev, known for his incendiary anti-Western rhetoric, has previously made unverified threats that have triggered international reactions. His latest comments underscore Moscow’s longstanding position that any seizure of its frozen assets would be viewed as theft and a gross violation of international law.
The dispute also risks complicating fragile diplomatic efforts. While von der Leyen stated U.S. Treasury Secretary Scott Bessent had “positively received” the loan idea, some analysts worry it could interfere with reported American attempts to broker ceasefire negotiations between Kyiv and Moscow.
The EU now faces a critical choice: press forward with a unprecedented financial mechanism to sustain Ukraine, a move it sees as legally sound and morally justified, but one that Moscow has now framed as a potential trigger for a direct and catastrophic escalation.
