Russia says EU will feel 'full measure' of retaliation over frozen assets plan

russia says eu will feel 'full measure' of retaliation over frozen assets plan

FILE PHOTO: Russian Foreign Ministry's spokeswoman Maria Zakharova attends the congress of the International Russophile Movement in Moscow, Russia March 14, 2023. REUTERS/Evgenia Novozhenina/File Photo

MOSCOW (Reuters) - The European Union will feel the "full measure" of Russian retaliation over its plan to use income from frozen Russian assets to help Ukraine, Russian Foreign Ministry spokeswoman Maria Zakharova said on Thursday.

EU countries have formally adopted a plan to use windfall profits from Russian central bank assets frozen in the EU for Ukraine's defence, the Belgian government said on Tuesday.

Russia says such action is illegal and undermines the foundations of the global financial system.

"We are talking about another attempt to legitimise theft at state level," Zakharova told reporters, saying the EU had shown it could not be considered a reliable jurisdiction for investors.

U.S. Treasury Secretary Janet Yellen said on Thursday that immobilised Russian assets represent a potential source of support for Ukraine through 2025 and beyond.

G7 negotiators have been discussing for weeks how to best exploit some $300 billion worth of Russian financial assets, such as major currencies and government bonds, which were frozen shortly after Moscow invaded Ukraine in February 2022.

The United States is pushing to find a way to bring forward the future income from those assets, either through issuing a bond or more likely granting Ukraine a loan that it says could provide it with as much as $50 billion in the near term.

Russia has threatened retaliation for weeks, but Moscow's options are limited when it comes to sovereign assets and it is not clear what form any retribution might take.

Russia's ability to mete out like-for-like retaliation if Western leaders seize its frozen assets has been eroded by dwindling foreign investment, but it may go after private investors' cash instead.

(Writing by Felix Light and Alexander Marrow; Editing by Mark Trevelyan)

OTHER NEWS

26 minutes ago

Chris Billam-Smith says experience was the key in avenging Richard Riakporhe loss

26 minutes ago

Baby-wearing dads celebrate Fathers’ Day with record-breaking walk in S’pore

26 minutes ago

‘In South Africa, you hear of disappearance all the time’: one photographer’s search for his sister’s missing years

26 minutes ago

HMRC has failed to fine a single ‘enabler’ of offshore tax fraud in five years

26 minutes ago

Cameron Smith's shirt at the 2024 U.S. Open is a periodic table of alcohol — and you can own it, too

26 minutes ago

From Oregon Trail to Wurdweb, five fun games to play on Apple Arcade this summer

26 minutes ago

2 dead, 6 injured in shooting at Texas Juneteenth celebration: officials

29 minutes ago

Inmates take staff hostage at a detention center in southern Russia

33 minutes ago

Seibold lauds gutsy Manly after 30-14 win over Dragons

33 minutes ago

Saudi FM: Ukraine peace process will need Russia’s participation

33 minutes ago

How to pick a watermelon: Sweet and ripe every time

33 minutes ago

Ratcliffe must axe Man Utd ace who earns 4x more than Branthwaite

33 minutes ago

Rachel Stevens admits she was left in 'turmoil' after falling for Dancing on Ice partner Brendyn Hatfield ahead of 'messy and scary' split from husband Alex Bourne

33 minutes ago

Brave Kate is a beacon of light in new behind-the-scenes Trooping the Colour video - as Waleses reveal they are 'in awe' at 'incredible' ceremony that included Princess' Buckingham Palace balcony appearance

39 minutes ago

The Rev James Lawson, Martin Luther King’s right-hand man in the Civil Rights struggle – obituary

39 minutes ago

Here’s how I’d target £1,580 in passive income next year using a £20k Stocks and Shares ISA

39 minutes ago

Artem Dovbyk’s path from Ukraine’s third tier to La Liga’s finest finisher

39 minutes ago

Christian Eriksen to complete football's greatest comeback - "I'd died for five minutes"

39 minutes ago

Slovenia vs Denmark: Euro 2024 prediction, kick-off time, TV, live stream, team news, h2h, odds today

39 minutes ago

Poland vs Netherlands: Euro 2024 prediction, kick-off time, TV, live stream, team news, h2h, odds today

39 minutes ago

Larsson: Barca need signings to win trophies next season

39 minutes ago

I have a terminal brain tumour and doctors have given me a year to live - I want this Father's Day to be the best ever in case it's my last one

39 minutes ago

Israel announces daily 'tactical pause' in fighting in southern Gaza to let humanitarian aid flow into the war-torn region

39 minutes ago

Tom Parker widow Kelsey says their young children, Aurelia, 4, and Bodhi, 3, still make Father's Day cards for the singer two years on from his death

39 minutes ago

We're parenting experts and here are 9 tips to help you survive Father's Day as a single mother

39 minutes ago

Inside King Charles's changing relationship with Prince William and Prince Harry amid family turmoil in recent years - as he celebrates Father's Day without his youngest son

41 minutes ago

Jayden Daniels has signed his rookie contract with the Washington Commanders

43 minutes ago

Taylor Swift Chokes Up On Stage During Final Liverpool Concert In Eras Tour

45 minutes ago

Michael Clarke appears to confirm romance with new real estate guru Arabella Sherborne as they enjoy romantic holiday on the Gold Coast

45 minutes ago

Driver shares frustration with photo of 'gas guzzler' parked in electric charging spot: 'Why is it that pickup truck drivers have such hate for EVs?'

45 minutes ago

The Wanted singer Tom Parker's kids make him Father's Day cards two years after death

45 minutes ago

New tool for tactical votes in Tory-held seats aims to change voting system

45 minutes ago

Whatever way you look at it, the Dublin Mayo rivalry covered up for years of poor football

47 minutes ago

Billy Crystal poked fun at Robert De Niro’s acting on set of ‘Analyze This’

47 minutes ago

Céline Dion believes late husband’s spirit is still in her life

47 minutes ago

Keith Richards got so wasted on Rolling Stones tour he was flown to another country while still in bed

48 minutes ago

Clive Myrie reveals shocking extent of racial abuse faced as BBC newsreader

48 minutes ago

France seek fast start to help end 24 years of waiting for European Championship glory

49 minutes ago

Richards Bay have Premiership fate in own hands with AmaTuks draw

49 minutes ago

In Sudan, Russia's Africa strategy advances another step