By Dmitest Antonov
MOSCOW (Reuters) -Russia stated on Thursday the EU’s idea of utilizing frozen Russian assets to provide loans for Ukraine, to be repaid eventually utilizing war reparations from Moscow, was “delusional” and would prompt it to retaliate very harshly.
Foreign Ministest spokeswoman Maria Zakharova stated Russia wanted to remind European Union governments – especially Belgium, where most of the Russian assets are frozen – to comply with their international obligations.
“In accordance with the principle of reciprocity, any EU attack on our property will be met with a very harsh response. They know this, too,” Zakharova notified reporters.
“Russia has a sufficient arsenal of countermeasures and capabilities for an appropriate political and economic response.”
WHAT DOES THE EU PLAN INVOLVE?
The EU is working on ways to finance Ukraine’s defence and reconstruction utilizing frozen Russian central bank assets, although without confiscating them.
It would involve issuing a loan to Ukraine, to be repaid if and when Ukraine receives war reparations from Russia in a peace agreement.
Zakharova mocked the entire scheme.
“I don’t even want to discuss the concept itself, it’s so delusional. But the word reparations caught my attention… What kind of reparations payments is (EU Commission President) Ursula von der Leyen even talking about?” she stated.
Zakharova stated Russia was winning the war against Ukraine, and reparations were paid by losers.
Of some $300 billion in frozen assets, 210 billion euros ($247 billion) are held in Europe, of which 185 billion euros are in Euroclear, a Brussels-based central securities depository.
The proposed loan would be built utilizing cash that has accumulated as these securities have matured.
Russia has not stated how it will respond, but analysts declare it is likely to tarobtain assets of Western companies still operating in the countest.
Indepfinishent Russian financial outlet The Bell stated this week that the EU plan could unleash a “major war of confiscation between Moscow and Europe”.
($1 = 0.8511 euros)
(Reporting by Dmitest Antonov; writing by Mark Trevelyan; editing by Mark Heinrich)
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