Russia refuses to compensate Ukraine for damages.
Russia's permanent representative to the European Union said there would be no compensation for Ukraine to repay its loans to the EU.
According to RIA Novosti on October 12, Russia's Permanent Representative to the European Union, Kirill Logvinov, stated that Ukraine has not received any compensation from Russia, as this money, if necessary, could be used to repay loans from the European Union (EU) within the framework of the EU-developed lending mechanism for Kyiv.
"If the resources available within this mechanism are insufficient, then the European Commission will continue to seize funds from Russia. That is, they will continue to use the money, as they call it, the surplus from so-called emergency income, in managing Russian state assets," Logvinov said on Rossiya 24, commenting on Ukraine's debt repayment plan developed in the EU.
According to a Russian diplomat in Europe, if the funds are not available, Kyiv will have to transfer the money received as war reparations to serve and repay its debts to the EU.
"If there is no compensation, then it is the Ukrainians themselves who will have to pay the EU," Logvinov said.
In February 2024, Oleg Ustenko, an advisor to Ukrainian President Zelensky on economic issues, estimated the total damages Kyiv would seek from Russia as $1 trillion. In 2023, Ukrainian Prime Minister Denis Shmigal put the projected compensation figure at $750 billion, stating that "the seized accounts and assets of Russia and Russian oligarchs should be the primary source of compensation."
The EU President - Hungary - had previously reported that the permanent representatives of the EU countries at the meeting on October 9th had preliminarily agreed on a mechanism for providing Kyiv with a loan of 35 billion euros - money obtained from frozen Russian assets.
For final approval of the texts on the credit mechanism, including the provisions described above, the approval of the European Parliament is also required.
Following Russia's launch of special operations in Ukraine, the EU and G7 countries froze nearly half of Russia's foreign exchange reserves, worth approximately 300 billion euros. Over 200 billion euros are held in the EU, primarily in accounts with Belgium's Euroclear – one of the world's largest payment and clearing systems.
The Russian Foreign Ministry has repeatedly called the freezing of Russian assets in Europe "theft of property," noting that the EU is targeting not only private funds but also Russian state assets.
Russian Foreign Minister Sergei Lavrov stated that Russia will retaliate against the West's seizure of frozen Russian assets. According to him, Russia also has the option of not returning the money that Western countries are holding in the country.
