Russia on Monday warned it would go after any European state that sought to take its assets after reports that the European Union is looking for new ways to leverage hundreds of billions of dollars of frozen Russian assets to help Ukraine.
The U.S. and its allies prohibited transactions with the Russian central bank and finance ministry after President Vladimir Putin sent his army into Ukraine in 2022, and blocked $300-$350 billion of sovereign Russian assets, mostly European, U.S. and British government bonds held in a European securities depository.
Reuters reported that European Commission President Ursula von der Leyen wants the European Union to find a new way to finance Ukraine's defence against Russia using the cash balances associated with Russian assets frozen in Europe.
Politico reported that the European Commission is mulling the idea of using Russian cash deposits at the European Central Bank from maturing bonds owned by Russia to fund a "Reparations Loan" for Ukraine.
"If this happens, Russia will pursue the EU states, as well as European degenerates from Brussels and individual EU countries who try to seize our property, until the end of the century," former Russian president Dmitry Medvedev wrote on Telegram.
Russia will pursue European states in "all possible ways" and in "all possible international and national courts" as well as "out of court", said Medvedev, who serves as deputy chairman of Russia's Security Council.
Russia says any seizure of its assets amounts to theft by the West and will undermine confidence in the bonds and currencies of the United States and Europe.
European states say that Russia is responsible for the destruction of Ukraine in the deadliest land war in Europe since World War Two - and that Moscow must be forced to pay.
Some bankers, though, have been wary of the precedent that seizing sovereign assets might have on the confidence that foreign sovereigns have in keeping their money invested in Western government bonds.
Medvedev said earlier this month that Russia would take more Ukrainian territory and go after British property around the world after London said it had spent around $1.3 billion of money raised from frozen Russian assets on weapons for Ukraine.
Russia's RIA state news agency said the West had made a total of $285 billion in foreign direct investment in Russia's economy which could be at risk if Russia's assets were taken.