Putin clarifies what will occur if West ‘robs’ Russia’s reserves

(MENAFN) Russian President Vladimir Putin has warned that any Western attempt to seize Russia’s frozen reserves would trigger an irreversible move toward regional payment systems, which could ultimately benefit the global economy.

Since the escalation of the Ukraine conflict in February 2022, the West has frozen about $300 billion in Russian sovereign assets, with around €200 billion ($209 billion) held by Euroclear, a clearing house based in Brussels. EU foreign policy chief Kaja Kallas has advocated using these funds to help rebuild Ukraine, though some EU countries oppose this idea.

Speaking at the Eurasian Economic Forum in Minsk, Putin criticized Western discussions about “stealing” Russian money, calling any such action outright robbery rather than theft. He said, “As soon as this happens, the transition to regional payment systems will speed up and become irreversible,” and suggested that this shift might actually be beneficial for the global economy, even if it comes at a cost.

Putin also stressed Russia’s commitment to strengthening its own financial and payment systems in response to these sanctions.

The frozen assets have already generated billions in interest, with Euroclear transferring $1.63 billion last July to Kyiv to support a $50 billion G7 loan for Ukraine. Meanwhile, the EU continues to debate ways to tap into the frozen funds without breaching international law, amid IMF warnings that confiscation could undermine trust in Western financial institutions.

Despite over three years of discussion, no agreement has been reached. Moscow has condemned the freezing of its assets and hinted at possible retaliatory measures against Western investments in Russia.

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