Top Russian banker threatens EU: '50 years of litigation'

Prominent Russian banker Andrei Kostin said Moscow would retaliate if the European Union uses Russia's frozen sovereign assets to grant a loan to Ukraine, and indicated that Moscow is considering launching a half-century-long dispute to recover its money, Reuters wrote on Monday.

At the summit in October, EU leaders tried to agree on a plan to use 140 billion euros ($162 billion) of Russian sovereign assets frozen in Europe as a loan to Kiev, but failed to get Belgium's support.

Under the EU bloc's plan, assets frozen in Europe by the Russian Central Bank would be loaned to Ukraine so that Kiev could use them for defense and regular budget needs.

“In terms of confiscating our money, ultimately we can do without it. The only problem is that this money could be used for war, not peace,” Kostin said ahead of a visit by US special envoy Steve Witkoff to Moscow.

“It is convenient to start a war not only with other people's hands, but also with other people's money – this is the ultimate finesse for Europe. But there can be no justification for this,” the Russian banker added.

Kostin said Russia would retaliate by confiscating assets held by European investors in Russia and added that “50 years of litigation” could follow even after peace in Ukraine is achieved.

He said Russia should be more active in suing the EU, Belgium and Euroclear – over the frozen assets – in Russian and international courts and suggested a trial at the United Nations Court.

Kostin, one of Russia's most powerful bankers, has been more open to sharing Russia's sovereign assets as part of a broader deal to achieve peace in Ukraine.

An initial version of the US-backed peace plan published in the media suggested that $100 billion of the frozen funds would be invested in the reconstruction of Ukraine, with some of the remaining funds invested in a joint US-Russia fund.

“If Russia agrees and is ready, sure. It's a matter of agreements,” Kostin said. He said that Witkoff's visit to Moscow was important and that Russia was prepared to make concessions in the negotiations, but that it would take time before an agreement could be reached.

“Sooner or later, we will reach an agreement. Life shows us that we need to look for compromises. Russia is also ready for them, because there is no unilateral movement in the negotiations,” Kostin added.