Kremlin says funds transfer to Ukraine from frozen Russian assets 'theft'

The transfer of $1 billion to Ukraine, derived from income on Russian assets frozen by the West, could lead to future legal action, as it is a theft, Kremlin spokesman Dmitry Peskov said on Wednesday.

"This money was stolen from us, and the blocking of our assets is absolutely illegal, violating all norms and rules," Peskov told a press briefing in Moscow.

He said Russia would utilize all available means to defend its rights and reclaim its property.

Ukrainian Prime Minister Denis Shmyhal announced on Tuesday that Kyiv had received $1 billion as the first installment from frozen Russian assets, under the G7 initiative.

Shmyhal noted that this is part of a planned $20 billion allocation, of which $50 billion in total loans will be serviced using future revenues from Russia's frozen sovereign assets, in line with the G7's October agreement.

The US has pledged $20 billion, while the remaining $30 billion will be contributed by the G7 and the EU, he said.

Many Western nations froze assets of the Russian Central Bank on their territory after Moscow's 2022 war on Ukraine. The assets amount to about $300 billion.