The European Union's proposal to provide Ukraine with billions of euros sourced from frozen Russian state assets has triggered a severe diplomatic crisis, with Moscow branding the move a direct 'act of war'.
Medvedev's Chilling Warning and the EU's €90bn Proposal
Dmitry Medvedev, the deputy chairman of Russia's Security Council and former president, issued a stark warning on Thursday, 4 December 2025. He stated that Moscow would consider the EU's financial plan a 'casus belli' – a justification for war. This threat came in response to the EU's strategy to channel approximately €90 billion (£79bn) to Kyiv.
The funds are intended to support Ukraine's defence and reconstruction efforts through a mechanism described as a 'reparations loan'. European Commission President Ursula von der Leyen argued that this financial backing is crucial, stating it would allow Ukraine to defend itself effectively and enter any future negotiations from a position of considerable strength. The sum is projected to cover around two-thirds of the country's wartime funding needs.
Legal Hurdles and the Belgian Custodian
The plan faces significant legal and political obstacles. The majority of the immobilised Russian sovereign assets are held by the financial clearing house Euroclear, which is based in Belgium. The Belgian government has formally expressed serious legal concerns about the proposal, highlighting the potential risks and precedents involved in repurposing frozen funds.
EU officials have sought to frame the scheme not as a confiscation but as a loan, which they believe may ease legal complexities. For the plan to proceed, it requires a qualified majority vote from member states: 15 out of the 27 nations, representing at least 65% of the EU's total population, must vote in favour.
International Repercussions and UK Stance
The escalating war of words has drawn reactions from beyond the EU. In the United Kingdom, Prime Minister Keir Starmer responded to the Russian leader's threats by vowing to keep pressure on President Vladimir Putin. This aligns with the UK's continued support for Ukraine amidst the ongoing conflict.
The situation creates a precarious diplomatic standoff. While the EU aims to bolster Ukraine's resilience, the forceful rhetoric from Moscow, including terms like 'act of war', raises the stakes considerably, testing the bloc's unity and legal ingenuity in uncharted territory.
