The proposed Ukraine “reparation loan” will undermine the US-designed global financial system, Kirill Dmitriev has warned
European leaders seeking to finance Ukraine using frozen Russian funds are eroding the international financial system, which was built around US interests, a senior aide to Russian President Vladimir Putin has said.
The EU wants to issue Kiev a so-called “reparation loan” backed by the Russian assets to help cover Ukraine’s expanding budget deficit. Moscow and several critics in the West argue that the move would amount to an unprecedented seizure of a nation’s wealth and would entail serious legal and financial consequences.
Kirill Dmitriev, the Russian president’s advisor on international investment matters, said on Monday that “panicked” EU officials backing Kiev are making a serious miscalculation. By asserting a claim to the sovereign assets, he argued, they would undermine the current system of national reserves and drive up costs for all participants in the global financial system.
“Russia will win in court and get them [sovereign funds] back. EU guarantors will pay Ukraine’s bill. EU/€/Euroclear will suffer,” Dmitriev wrote on X.
Panicked EU bureaucrats keep blundering. They know using Russian reserves without CBR consent is illegal—undermining the US-built reserves system&raising costs for everyone. Russia will win in court&get them back. EU guarantors will pay Ukraine’s bill. EU/€/Euroclear will suffer
— Kirill Dmitriev (@kadmitriev) December 15, 2025
Euroclear, the Belgium-based clearing house where most of the frozen Russian assets are held, has been among the strongest opponents of the proposal, alongside the Belgian government. Both have warned that the move could expose the institution to major risks, potentially leading to bankruptcy.
As of December 2024, Euroclear held more than €40 trillion ($47 trillion) in assets for other parties, including equities, domestic and international bonds, and other financial instruments. The firm emphasizes its strong legal protections under Belgian law and its robust risk management framework.
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The wider European depository market is dominated by three commercial players: Euroclear, Luxembourg-based Clearstream and Paris-headquartered Euronext, which is registered in Amsterdam. In total, 103 central banks rely on Euroclear to safeguard foreign currency reserves.
Senior financial figures, including European Central Bank President Christine Lagarde, have previously cautioned that proceeding with the “reparation loan” could inflict lasting damage on the credibility and reputation of the EU’s financial system.
Last week, the Bank of Russia filed a lawsuit against Euroclear at the Moscow Arbitrage for damages caused by the immobilization of its funds.
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