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Ukraine peace discussions highlight major shifts in Putin’s political mindset

Ukraine peace discussions highlight major shifts in Putin’s political mindset

Ukraine peace discussions highlight major shifts in Putin’s political mindset

December 3, 2025

Russia Announces Pokrovsk Seizure Ahead of US Talks, Ukraine Disputes Claim

Russia Announces Pokrovsk Seizure Ahead of US Talks, Ukraine Disputes Claim

Russia Announces Pokrovsk Seizure Ahead of US Talks, Ukraine Disputes Claim

December 2, 2025

ussia warns Europe over moves to tap frozen assets for Ukraine News71 — Moscow on Monday threatened to pursue any European country that attempts to use Russian assets to finance Ukraine, after new ideas surfaced in Brussels on unlocking value from reserves frozen since 2022. After the invasion of Ukraine, the United States and its allies barred transactions with Russia’s central bank and finance ministry and immobilised an estimated 300–350 billion dollars in sovereign assets. Much of that money is parked in Europe as EU, US, and UK government bonds held at European securities depositories. News71 understands that European Commission President Ursula von der Leyen wants the EU to design a mechanism that channels cash balances linked to frozen assets to support Ukraine’s defence. Politico separately reported that officials are considering using cash deposits at the European Central Bank that arise when Russian-owned bonds mature to back a reparations loan for Kyiv. The response from Moscow was immediate. Dmitry Medvedev, former Russian president and now deputy chair of Russia’s Security Council, said Russia would pursue EU states and officials who try to seize Russian property for as long as necessary. He indicated that Moscow would act in every available forum, in international and national courts and, if required, outside the courts. Russia argues that any seizure or forced use of its property amounts to theft and would damage trust in Western currencies and sovereign bonds. EU governments counter that Russia is responsible for the devastation in Ukraine, the deadliest land war in Europe since World War Two, and must ultimately pay for reconstruction. Banks and market participants are cautious about the precedent. Some warn that diverting a sovereign’s reserves could discourage foreign governments from holding funds in Western bond markets. To limit systemic risk, EU discussions have increasingly focused on using profits, interest, or cash flows connected to the assets rather than the principal itself, though even that approach could prompt lengthy court battles. Medvedev has also warned of retaliation after London disclosed that around 1.3 billion dollars raised from frozen Russian assets had been directed to weapons for Ukraine. He said Russia would seek additional Ukrainian territory and target British property globally if Western governments proceed down this path. Russia’s state news agency RIA has highlighted Western exposure inside Russia, claiming that total foreign direct investment from Western countries stands at roughly 285 billion dollars, implying those holdings could be endangered if Russian assets are taken. What comes next: Brussels is testing legally defensible ways to mobilise cash associated with frozen assets while trying to avoid collateral damage in financial markets. Any EU scheme, whether a reparations loan backed by cash balances or a framework to capture future interest, would likely trigger Russian lawsuits and countermeasures. The debate now sits at the intersection of funding Ukraine’s defence and preserving trust in the global financial system.

ussia warns Europe over moves to tap frozen assets for Ukraine News71 — Moscow on Monday threatened to pursue any European country that attempts to use Russian assets to finance Ukraine, after new ideas surfaced in Brussels on unlocking value from reserves frozen since 2022. After the invasion of Ukraine, the United States and its allies barred transactions with Russia’s central bank and finance ministry and immobilised an estimated 300–350 billion dollars in sovereign assets. Much of that money is parked in Europe as EU, US, and UK government bonds held at European securities depositories. News71 understands that European Commission President Ursula von der Leyen wants the EU to design a mechanism that channels cash balances linked to frozen assets to support Ukraine’s defence. Politico separately reported that officials are considering using cash deposits at the European Central Bank that arise when Russian-owned bonds mature to back a reparations loan for Kyiv. The response from Moscow was immediate. Dmitry Medvedev, former Russian president and now deputy chair of Russia’s Security Council, said Russia would pursue EU states and officials who try to seize Russian property for as long as necessary. He indicated that Moscow would act in every available forum, in international and national courts and, if required, outside the courts. Russia argues that any seizure or forced use of its property amounts to theft and would damage trust in Western currencies and sovereign bonds. EU governments counter that Russia is responsible for the devastation in Ukraine, the deadliest land war in Europe since World War Two, and must ultimately pay for reconstruction. Banks and market participants are cautious about the precedent. Some warn that diverting a sovereign’s reserves could discourage foreign governments from holding funds in Western bond markets. To limit systemic risk, EU discussions have increasingly focused on using profits, interest, or cash flows connected to the assets rather than the principal itself, though even that approach could prompt lengthy court battles. Medvedev has also warned of retaliation after London disclosed that around 1.3 billion dollars raised from frozen Russian assets had been directed to weapons for Ukraine. He said Russia would seek additional Ukrainian territory and target British property globally if Western governments proceed down this path. Russia’s state news agency RIA has highlighted Western exposure inside Russia, claiming that total foreign direct investment from Western countries stands at roughly 285 billion dollars, implying those holdings could be endangered if Russian assets are taken. What comes next: Brussels is testing legally defensible ways to mobilise cash associated with frozen assets while trying to avoid collateral damage in financial markets. Any EU scheme, whether a reparations loan backed by cash balances or a framework to capture future interest, would likely trigger Russian lawsuits and countermeasures. The debate now sits at the intersection of funding Ukraine’s defence and preserving trust in the global financial system.

Politics

Moscow warns Europe over frozen assets, threatens legal action and retaliation

September 15, 2025