Russian President Vladimir Putin has issued a severe warning to European Union leaders, threatening "grave consequences" if the bloc proceeds with plans to seize frozen Russian state assets. The threat was delivered during his annual televised press conference on Friday 19 December 2025.
EU's €90 Billion Loan and the Frozen Funds
The confrontation stems from a recent agreement by EU leaders to provide Ukraine with a substantial financial package. The bloc has decided to grant Kyiv a €90 billion (£79bn) loan. Crucially, this decision was made as a direct alternative to a more contentious proposal: using approximately €200 billion (£185bn) in Russian central bank assets that were frozen in response to Moscow's invasion of Ukraine.
European officials have been debating for months how to legally channel these immobilised funds to support Ukraine's defence and reconstruction. The chosen loan mechanism was seen as a way to provide immediate support while navigating complex legal and economic ramifications.
Putin's 'Daylight Robbery' Accusation
In a characteristically combative performance, President Putin did not mince his words when addressing the EU's actions. He vehemently condemned any potential use of the frozen assets, branding such a move as nothing short of "daylight robbery".
The Russian leader argued that confiscating the funds would irrevocably damage the West's standing on the global stage. "This would subvert all confidence in Europe, in the so-called 'civilised' West, as a place for reliable assets and a safe jurisdiction," Putin asserted. He framed the EU's plan as a violation of fundamental principles of property and international law that would backfire economically and diplomatically.
Implications for Europe and International Relations
This latest verbal escalation significantly deepens the rift between Moscow and Brussels. Putin's explicit threat of "grave consequences" leaves open the question of potential Russian retaliation, which could take various forms:
- Further economic countermeasures against European businesses and interests.
- Increased geopolitical pressure in other conflict zones or via energy supplies.
- Legal challenges in international courts and forums.
The standoff places EU nations in a difficult position, balancing the urgent need to support Ukraine against the risks of escalating a economic war with a nuclear-armed state. The warning from the Kremlin makes it clear that any future step towards directly seizing the frozen Russian assets will be met with a forceful and unpredictable response, ensuring this issue remains a flashpoint in international diplomacy for the foreseeable future.
