The Big Money Showdown: Russia vs. The EU

Russia's Discontent

Russia is not happy. They want their money back. A huge amount - $230 billion. They claim Euroclear, a major financial institution, should return it. Why? Because Russia insists it's theirs.

But here's the catch: the EU froze this money after Russia's invasion of Ukraine. Now, the EU wants to use some of it to help Ukraine. They argue it's acceptable because Russia still owns the money but can't use it.

Russia's Threats and Legal Battle

Russia disagrees. They call it theft. They've even threatened to seize assets of European investors in Russia. Kirill Dmitriev, a Russian official, claims they will win in court and recover the money. He warns that the EU and Euroclear will suffer consequences. Dmitriev also accused the EU of violating financial rules.

Euroclear remains silent. They already face over 100 lawsuits in Russia. Russia might seek recovery in friendly nations like China or the UAE. The EU is working to block such moves and protect its own financial interests.

The EU's Plan and Disputes

The EU has a plan: lend €90 billion to Ukraine using the frozen Russian funds. Russia would still own the money, but Ukraine would only repay it if Russia agrees to compensate for the damage caused in Ukraine.

Some countries, like Belgium, prefer a different approach. They want the EU to borrow money collectively to aid Ukraine. However, not everyone agrees. Hungary, for instance, opposes this idea.

EU's Foreign Policy Chief Weighs In

Kaja Kallas, the EU's foreign policy chief, supports the reparations loan. She argues it doesn't come from taxpayers' money and sends a clear message: if you cause damage, you must pay for it.