Kremlin Warns EU’s Asset Seizure Plan Could Trigger War with Europe

A senior official from the Kremlin has issued a grave warning that the European Union’s proposal to seize or leverage £80 billion in frozen Russian assets could serve as a justification for Russia to escalate the conflict with Europe.

Dmitry Medvedev, former Russian president and one of Moscow’s most hardline political figures, issued the warning on Thursday, stating that the EU’s plan would be seen as a direct provocation.

Medvedev declared:
“If the European Union attempts to steal Russian assets frozen in Belgium under the guise of a so-called ‘reparations loan,’ Russia may view this as a casus belli — a justification for war with all the consequences for Brussels and individual EU countries.”

EU Proposes Most Ambitious Financial Package for Ukraine to Date

Medvedev’s comments followed the European Commission’s announcement of its most far-reaching financial initiative yet: a proposal to raise nearly £80 billion for Ukraine by borrowing against or outright seizing frozen Russian assets.

European Commission President Ursula von der Leyen said the plan aims to meet two-thirds of Ukraine’s financial needs through 2027.

“We are proposing €90 billion to support Ukraine over the next two years,” von der Leyen stated. “Pressure is the only language the Kremlin responds to — and we can increase it.”

The proposal would block the return of over £180 billion in frozen Russian state and private assets, primarily held by Euroclear in Belgium, which amounts to around £160 billion. Belgian officials have repeatedly expressed concern that transferring these funds to Ukraine could make the country liable for the full sum under international law.

Medvedev’s threat is the strongest signal yet that Russia might interpret the permanent loss of its frozen assets as grounds for an escalation with the EU. So far, Western governments have refrained from outright seizure due to potential legal risks and fears of retaliation against European assets in Russia.

US Peace Efforts Stall Amid Diplomatic Tensions

The Kremlin’s warning coincides with stalled US efforts to broker peace between Russia and Ukraine.

Donald Trump’s special envoy, Steve Witkoff, and his son-in-law Jared Kushner met with Vladimir Putin and other senior Russian officials for more than five hours in Moscow on Tuesday. However, the Kremlin later stated that no progress had been made.

The envoys had originally planned to visit Brussels to brief Ukrainian President Volodymyr Zelensky, but now they will meet senior Ukrainian official Rustem Umerov in Miami for further discussions.

This diplomatic push comes after a leaked draft US peace proposal caused alarm in Kyiv and European capitals, with concerns that Washington might be willing to make concessions to Russia. A revised proposal, prepared in Geneva, was reportedly more favorable to Ukraine, but significant disagreements — particularly over territorial issues — remain unresolved.

Trump acknowledged on Wednesday that the path to peace is “unclear,” though he asserted that his administration believes Putin is serious about ending the war.

Zelensky Stands Firm on Ukraine’s Territorial Integrity

Despite growing diplomatic pressure, Ukraine remains firm on its territorial integrity.

Andriy Yermak, Chief of Staff to President Zelensky, reaffirmed last week:
“As long as Zelensky is president, no one should expect Ukraine to give up territory. He will not sign away land — the constitution prohibits it.”

Russian Advances on the Battlefield and Energy Strikes Intensify

This week, Putin celebrated the capture of Pokrovsk in eastern Ukraine, calling it a key milestone in Moscow’s broader military objectives. Russian state TV broadcast footage of soldiers raising the Russian flag in the city center.

Meanwhile, Russian airstrikes continue to target Ukraine’s energy infrastructure. Overnight strikes left seven people injured, including a child, in Dnipropetrovsk, while over 50,000 residents in Odesa were left without power.

Turkey has issued a warning to both Russia and Ukraine after a series of strikes on its Black Sea coast, urging both sides to avoid targeting energy facilities.

Putin’s Warning to Europe, NATO Responds

Before meeting with Trump’s envoys, Putin issued a blunt message to Europe:

“We are not planning to go to war with Europe. But if Europe wants to and starts, we are ready right now.”

In response, a NATO official dismissed Putin’s claim, stating that Russia lacks the capability to launch a full-scale confrontation with the continent.

This is a developing story and will be updated as more information becomes available.