Russian President Vladimir Putin issued a stark warning during his annual end-of-year press conference on December 19, 2025, asserting that the European Union would have faced "severe consequences" had it proceeded with plans to utilize frozen Russian central bank assets to finance Ukraine's defense. He characterized any such move as "daylight robbery," emphasizing that the potential repercussions deterred the bloc from implementing the scheme.

Putin's remarks came mere hours after EU leaders, following protracted negotiations in Brussels, abandoned the proposal to back a substantial loan with approximately €210 billion in immobilized Russian assets, most of which are held at the Euroclear depository in Belgium. Instead, the leaders opted to raise €90 billion through joint borrowing on capital markets, providing Ukraine with critical financial support for 2026-2027 while keeping the assets frozen until Russia compensates for war damages.

The Russian leader suggested that the EU's retreat from the original plan stemmed from awareness of grave risks, including damage to investor confidence in the eurozone and potential legal challenges. He reiterated Russia's commitment to defending its interests through courts and other means, adding that confiscated property would eventually need to be returned, regardless of the method employed.

Also Read: Putin to Speak on Ukraine War, Peace Prospects at Marathon Press Meet

This development underscores ongoing tensions surrounding the frozen assets, immobilized since Russia's full-scale invasion of Ukraine in 2022. While the EU's alternative funding mechanism ensures continued aid to Kyiv amid escalating military needs, it highlights internal divisions, particularly Belgium's concerns over legal and financial liabilities.

Putin's comments reinforce Moscow's hardline stance on the conflict, as he maintained that any future attempts to tap the assets could provoke significant retaliation, further complicating international efforts to support Ukraine without directly seizing sovereign Russian funds.

Also Read: UK Enters “More Dangerous Than Ever” Security Era, Warns Defence Chief