(MENAFN) Slovakia has declared it will not back an EU proposal to tap frozen Russian assets to fund Ukraine’s military efforts, Prime Minister Robert Fico said Saturday, emphasizing his country’s preference for a peaceful resolution over military aid.

Since 2022, Western nations have frozen roughly $300 billion in Russian sovereign assets. Last year, interest from these funds helped generate $50 billion in loans for Ukraine. The EU now aims to raise an additional €140 billion ($160 billion) using the frozen assets as collateral, based on the expectation that Moscow would eventually provide reparations as part of a peace agreement.

EU leaders were unable to reach consensus on the plan during an October summit, postponing a decision to a European Council meeting in December.

In an interview, Fico questioned whether the EU’s approach sought to end hostilities or prolong them, suggesting that channeling another $160 billion to Kyiv could extend the conflict by up to two years.

“I said this very clearly: the Slovak Republic, as long as I am prime minister, will not participate in any legal or financial mechanisms whose goal would be the confiscation of frozen assets and which are intended to end up as military expenditures in Ukraine,” Fico stated.

He warned that using the frozen funds could trigger billion-euro arbitrations and create significant challenges for EU states. Belgium has voiced similar concerns, noting that most of the frozen assets are held at the Euroclear clearinghouse and cautioning that the move could provoke severe retaliation from Moscow.

Belgian Defense Minister Theo Francken estimated in October that Russian retaliation could cost the EU more than $170 billion, adding, “Of course, this money will not rebuild Ukraine but will continue the war.”

The Kremlin has also condemned the plan, with spokesman Dmitry Peskov warning that seizing Russian assets would constitute theft and “boomerang” on those attempting it, with potential legal consequences.

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