The Kremlin has reacted sharply to an initiative by European leaders to provide Ukraine with a $165 billion loan using profits or guarantees from frozen Russian assets

The New York Times reported the information.

Kremlin spokesman Dmitry Peskov stated that Moscow sees no difference between direct confiscation and a credit scheme built on these funds.

“We are talking about theft,” he emphasized.

The reaction intensified after Russian dictator Vladimir Putin signed a decree accelerating the redistribution of foreign assets within Russia. Analysts believe that Moscow may respond in kind—by freezing or seizing the property of companies and citizens from countries that support the loan for Ukraine. Already, Russia is transferring profits from Western companies to special so-called “type C” accounts, from which funds can only be withdrawn with government permission.

The European Commission, for its part, is promoting the idea of a so-called “reparation loan,” which does not involve the full seizure of assets and would be repaid only if Russia compensates Ukraine for the damages caused.

The NYT notes that Russia perceives such financial engineering as a dangerous precedent. Deputy Chairman of the Russian Security Council Dmitry Medvedev threatened to pursue the involved states “until the end of time… by every means possible”—both in international courts and outside of them.

Experts do not rule out new attacks on foreign assets in Russia, including their confiscation or use as collateral for Russia’s own loans. At the same time, Putin warns that any attempt by the West to permanently “take” the frozen funds could destroy the global financial system and accelerate the “rejection of the dollar and euro” in world trade.

“There’s constant talk about how they’re planning to steal our money… But once that happens, the movement toward regionalization of payment systems will accelerate and become, without a doubt, irreversible.” Putin said.

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