Moscow decries 'theft' as EU uses frozen Russian funds to aid Ukraine

Moscow on Tuesday again threatened to retaliate against a European Union measure to use interest from frozen Russian funds to finance military aid for Ukraine.

Kremlin spokesman Dmitry Peskov labelled the EU's decision, announced in late June, as "theft."

He further called it a "direct violation of international law" and of "property rights," demanding the prosecution of EU decision-makers.

The EU measure is set to raise €1.4 billion ($1.5 billion) in military aid for Kiev from the proceeds of frozen Russian Central Bank assets.

The first instalment of payments is due to be made in early August.

The funds are set to be given to EU member states such as Germany and the Czech Republic, which will then provide Ukraine with equipment such as air defence systems and artillery shells.

A further €1 billion in interest income is to follow by the end of the year.

"These funds are not only effectively being stolen, they are also being spent on the purchase of weapons. It's hard to think of anything worse," said Peskov.

Russia has repeatedly criticized Western support for Kiev since it launched its invasion in February 2022.