The international gold and foreign exchange reserves held by the world’s biggest oil-producing nations in the EU could be at risk, Russian President Vladimir Putin said on Friday, after EU leaders discussed using frozen Russian assets to help Ukraine.
“This is not just a blow to its image; it is an undermining of trust in the euro zone,” Putin said in year-end remarks to the Russian press, as carried by Reuters.
“The fact is that many countries keep their gold and foreign exchange reserves in the euro zone, not only Russia but first and foremost the oil-producing countries,” the Russian president added.
After marathon talks this week, the European Union decided early on Friday to provide a loan to Ukraine of 90 billion euros, or $105 billion, for the years 2026-2027 based on EU borrowing on the capital markets backed by the EU budget headroom. This loan will help Ukraine fund its defense against Russia but will not come from the frozen Russian assets.
A seizure of Russian assets, or “robbery” as Putin put it, needs to be canceled or it would have grave consequences for EU member states, according to the Russian President.
Meanwhile, U.S. President Donald Trump is said to be pushing for a U.S.-brokered deal by Christmas.
Earlier this week, the U.S. and Ukraine both signaled progress in negotiations about a peace agreement during talks in German capital city of Berlin. Washington is now reportedly offering Ukraine security guarantees modeled on NATO’s Article 5 mutual defense pledge.
However, key issues about territory remain unresolved, and Putin has signaled he wants all occupied territory.
At the annual press conference, Putin said on Friday that Russia does not believe Ukraine is ready for peace talks.
Despite the peace talks, Russia prepares for “the coming year as a year of war,” Ukrainian President Volodymyr Zelenskyy said earlier this week.
The United States is reportedly considering a fresh barrage of sanctions against Russia’s oil exports if Putin rejects a peace agreement for Ukraine.
By Charles Kennedy for Oilprice.com
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