UK will return Russian money it is ‘so generously giving away’ – Moscow

The UK’s transfer of the proceeds from Russia’s frozen central bank funds to Ukraine is a blatant violation of international law, Russian State Duma Speaker Vyacheslav Volodin has said.

On Friday, Ukrainian Prime Minister Denis Shmigal said that Kiev had received a first tranche worth about $1 billion from the UK, secured by the proceeds from the Russian assets. He said the funds would go toward “strengthening” Ukraine’s defense and voiced hope that all frozen Russian assets would be “confiscated and transferred” to Kiev.

Speaking to reporters later in the day, Volodin said Britain “will have to give back to Russia what they are now so generously giving away,” adding that Moscow has “every reason to respond in kind.”

Volodin also warned that London’s actions would “undermine confidence” in its financial system, as they “violate the principle of property inviolability, a cornerstone of the global financial system.”

Western countries froze around $300 billion in Russian central bank assets after the escalation of the Ukraine conflict in 2022. Of this total, more than $200 billion is reportedly held at the Brussels-based clearinghouse Euroclear, while up to $30 billion is in the UK.

The assets have already generated billions in interest. Euroclear transferred over $1 billion directly to Ukraine last July. Kiev has been pressing its Western backers to expropriate the assets to finance its military and reconstruction efforts.

The West remains divided over the fate of the frozen assets. Many EU countries are reluctant to tap the reserves themselves, opting instead for the interest earned on them. Some have raised concerns that seizing the assets could damage the Western financial system and erode trust in the euro. The International Monetary Fund has also warned that taking the funds without a clear legal basis could undermine global confidence in Western financial institutions.

The Kremlin has repeatedly denounced the asset freeze as “theft” and warned of legal action against those involved in the asset seizure.