EU's frozen assets plan risks far-reaching consequences: Russian ambassador

A European Union plan to use frozen Russian assets to fund Ukraine in its fight against Russia would have "far-reaching consequences" for the EU,  Russia's ambassador to Germany warned on Friday.

"Any operation with sovereign Russian assets without Russia's consent constitutes theft. It is also clear that the theft of Russian state funds will have far-reaching consequences," Sergey Nechaev said in a statement sent to AFP.

The EU on Wednesday laid out a plan to use frozen Russian assets to help fund Ukraine with 90 billion euros over the next two years, despite opposition from Belgium, where the bulk of the assets are held.

German Chancellor Friedrich Merz was due to discuss the plan during a private dinner with Belgian Prime Minister Bart De Wever and European Commission President Ursula von der Leyen on Friday evening.

But Nechaev said the "unprecedented step" could "destroy the business reputation of the European Union and plunge European governments into endless lawsuits".

"In reality, it is a path to legal anarchy and the destruction of the foundations of the global financial system, which will primarily strike the European Union," he said.

"We are confident that this is understood in Brussels and Berlin."

EU leaders have vowed to keep Ukraine afloat as it faces increasing pressure on the battlefield and from US President Donald Trump as he looks to end the war on terms they see as unfavourable to Kyiv.

They are looking for ways to fund a loan to Kyiv which, under the proposal, would be paid back by any eventual Russian reparations to Ukraine.

Belgium, home to international deposit organisation Euroclear -- which holds most of the Russian assets -- has so far rejected the plan because of potential legal repercussions.

Nechaev said the plan showed that Europe does not have the "considerable resources" required to keep supporting Ukraine.