Top Russian banker says the EU faces 50 years of litigation if it takes Russia’s frozen assets

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By Gleb Bryanski

MOSCOW, Dec 1 (Reuters) – Top Russian banker Andrei Kostin said that Moscow would retaliate if the European Union used frozen Russian sovereign assets for a loan to Ukraine, and said Moscow could unleash half a century of litigation over the money.

At a summit in October, EU leaders tried to agree on a plan to use 140 billion euros ($162 billion) in frozen Russian sovereign assets in Europe as a loan for Kyiv, but failed to secure Belgium’s backing.

Under the EU plan the frozen Russian central bank assets in Europe would be lent to Ukraine for Kyiv to use for defence and regular budget needs.

“As for the seizure of our money, in the end, we can manage without it. The only problem is that this money might be used for war, not peace,” Kostin said, speaking ahead of U.S. special envoy Steve Witkoff’s visit to Moscow.

“It’s convenient to wage war not only with others’ hands but also with others’ money – this is the ultimate finesse for Europe. But there can be no justification for this.”

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

He said that Russia should be more active in suing the EU, Belgium and Euroclear over the assets in Russian and international courts, and suggested a law suit in the United Nations’ court.

Kostin, one of Russia’s most powerful bankers, was more open to the idea to split up Russia’s sovereign assets as part of a broader agreement to achieve peace in Ukraine.

An early version of the U.S.-backed peace plan, published in the media, suggested that $100 billion of the frozen funds will be invested in reconstruction of Ukraine with some of the rest of the funds invested in joint US-Russia fund.

“If Russia agrees and is ready, by all means. It’s a matter of agreements,” Kostin said. He said that Witkoff’s visit to Moscow was important and Russia was ready to make concessions in the negotiations but reaching an agreement will take time.

“Sooner or later, we will reach an agreement. Life shows that compromises need to be sought. Russia is also ready for them, as there is no such thing as one-way movement in negotiations,” Kostin said.

(Writing by Gleb Bryanski; editing by Guy Faulconbridge)