Frozen Assets Feud: EU's Bold Move and Russia's Fiery Reactions

The European Commission proposes using €210 billion of frozen Russian assets to aid Ukraine. Russia warns of severe repercussions, hinting at seizing foreign assets and lengthy litigation. With €300 billion frozen in C-type accounts, EU companies risk further asset seizures in Russia, intensifying geopolitical tensions.

The European Commission has taken an unprecedented step by proposing to redirect approximately €210 billion from frozen Russian sovereign assets to finance Ukraine. Such a move has been met with strong opposition from Russia, which equates the action to theft and promises harsh retaliatory measures.

Among possible responses, Russia could target frozen foreign private funds. Former President Dmitry Medvedev indicated that about $300 billion in foreign assets are held in Russia's "C-type" accounts, designed to manage securities owned by investors from nations deemed unfriendly to Russia. Officials warn this could trigger another wave of property seizures in Europe.

Additionally, Russia could target EU investors' physical assets. Local subsidiaries of international EU-based businesses, generating substantial profits in Russia, face the threat of asset seizures. Despite complexities, lawsuits from Russian authorities and private individuals against Europe could unfold over half a century if these plans proceed.

(With inputs from agencies.)