Kremlin Calls EU Transfer of Frozen Asset Revenue to Ukraine Theft

The Kremlin has rejected the European Union's decision to channel revenue from frozen Russian assets to Ukraine, describing the move as unlawful and tantamount to theft.

The response from Moscow came after the European Commission said in August that the bloc would provide Kyiv with €1.4 billion, equivalent to about $1.6 billion, drawn from interest accrued on cash balances tied to Russian central bank assets frozen by the EU over the war in Ukraine.

The funds form part of a broader pool of Russian central bank reserves immobilised by the bloc since the conflict began. Under the plan outlined by the Commission, the interest generated by those holdings would be directed to Ukraine rather than held in place.

Moscow's objection centres on the legal status of the transfer, which it argues has no basis and amounts to expropriation of Russian state property. The Kremlin's position sets up a continuing dispute with Brussels over the use of the frozen reserves and the income they produce.

The EU has not signalled any change to the arrangement following the Kremlin's remarks.