Russia Fumes at US Plan to Hand Seized Oligarch Assets to Ukraine Veterans

The Kremlin has condemned a plan by the U.S. that would see assets seized from sanctioned Russian oligarchs used to help Ukrainian military veterans.

During a press conference in Kyiv on Wednesday, U.S. Secretary of State Antony Blinken said that "those who have enabled [Vladimir] Putin's war of aggression should pay for it."

In announcing another tranche of military and financial support for Ukraine to fight Russian aggression, Blinken said: "For the first time we are transferring to Ukraine assets seized from sanctioned Russian oligarchs, which will now be used to support Ukrainian military veterans."

Reports suggest the amount seized so far is around $5.4 million.

However, in comments to reporters on Thursday, Kremlin spokesperson Dmitry Peskov said Moscow considered the blocking, seizure or withholding of funds linked to the Russian state abroad "as illegal acts."

"Any claims that they managed to find justification for continuing this lawlessness are absolute legal nonsense, and in any case they will further lead to legal proceedings one way or another," he said, according to the Telegram channel Vi Slushali Mayak, which reports Kremlin news.

"Not a single case of such illegal detention will be left unattended," he said, adding that some Russian businessmen had secured court decisions in Europe that ruled such transfers illegal.

The pro-Ukrainian Eastern European news outlet Nexta posted a screengrab of the comments on its Telegram channel.

"The title "Clown of the Year" is solemnly awarded to Peskov," commented Nexta. "It would seem that you can no longer disgrace yourself, but he proves that it is possible. Sometimes I even feel sorry for him, honestly." Newsweek has contacted the U.S. State Department for comment.

During his surprise visit to Kyiv, Blinken announced more than $1 billion in aid for Ukraine focused on military and security assistance. He also held discussions with Ukrainian President Volodymyr Zelensky about long-term security arrangements.

Since the start of Putin's full-scale invasion, Russia has faced tough sanctions including asset freezes of the country's officials. The issue of how frozen Russian assets might be used to help with Ukraine's reconstruction was discussed at the Ukraine Recovery Conference in London in June.

The move to use oligarchs' wealth to help Ukraine came as Western officials gathered in the United Arab Emirates to discuss technology sanctions against Russia amid fears that certain exports could be weaponized by Moscow.

Representatives from the U.S., the U.K., and the EU held talks on Thursday about how to stop Russia from evading sanctions and obtaining advanced AI technology, according to reports.