Tensions Rise Over EU's Plan for Frozen Russian Assets

Russia has labeled the European Union's proposal to employ frozen Russian assets to issue loans for Ukraine as 'delusional,' threatening serious retaliation. The plan, criticized by Russian officials, involves providing loans to Ukraine to be repaid with future war reparations from Russia.

Maria Zakharova, Foreign Ministry spokeswoman, emphasized that the EU's actions could incite a strong economic and political response from Moscow. She urged compliance with international agreements, especially from Belgium, where a significant portion of the assets are held.

Analysts suggest this plan could spark a 'major war of confiscation' between Russia and Europe, marking a new phase of economic conflict. With $210 billion of the $300 billion in frozen assets located in Europe, tensions are set to rise.

(With inputs from agencies.)