Kremlin warns EU plan to fund Ukraine with frozen Russian assets will erode trust

ISTANBUL

Russia on Wednesday criticized the European Commission’s plan to transfer €2 billion ($2.3 billion) to Ukraine from proceeds of frozen Russian assets, warning it would undermine global confidence in property rights.

“These are additional steps toward, probably, the complete destruction of trust in the principle of the inviolability of property,” Kremlin spokesperson Dmitry Peskov told reporters, responding to European Commission President Ursula von der Leyen’s announcement that the EU would fund Ukraine’s drone production with the assets.

“The boomerang will seriously impact those who are the main depositories, countries interested in investment attractiveness,” Peskov added.

Von der Leyen earlier said that the bloc had agreed with Kyiv to allocate approximately €2 billion for drones using revenues from the immobilized Russian assets.

The EU previously decided to channel profits from frozen Russian sovereign funds to support Ukraine’s defense industry, despite Moscow’s repeated objections.