MOSCOW

Russian President Vladimir Putin said on Friday that the EU is "not succeeding in carrying out" the expropriation of the frozen Russian assets.

Commenting on discussions about expropriation of Russian frozen assets in the EU at an annual news conference in Moscow, Putin said this effort is faltering due to the severe consequences the perpetrators themselves would face, arguing that "theft" is an unsuitable definition for what the EU is trying to do.

"Theft is a secret appropriation, while they are trying to do it openly. It's robbery," he said.

Putin warned that such actions are fraught with "the dire consequences for the robbers," adding: "It's not only a blow to the image, it is also undermining global trust."

One only needs to take the first step, and it can then be extended to other states under various pretexts, he said.

As an example, he cited the legal frameworks in some Muslim countries, where stringent laws are enacted to protect traditional values, noting that the EU may have some issues with them.

"You just have to start doing it, and then you can do it under various pretexts. For example, someone might not like the laws in some Muslim countries, which have strict laws to protect their traditional values," he argued.

Russia, for its part, will continue to defend its interests primarily in the courts and will find a jurisdiction that will be independent, he said.

Explaining the consequences, Putin pointed out that the assets are supposed to be used as guarantees for the credit, and issuing a loan secured by Russian assets means raising national debts and adding burdens to already difficult budgets of European countries.

"Apart from reputational losses, there may be direct losses affecting the fundamental principles of the modern financial world order. And most importantly whatever they steal and however they do it, sooner or later they will have to give it back," he said.

The president said the move attacks the fundamentals of the global financial system, undermines trust in the eurozone, alarming the many countries that store reserves there.

"Because, of course, many countries besides Russia store their gold and currency reserves in the eurozone, including those with surplus resources," he said. "And they are watching what happens, already watching, already having suspicions, doubts, and fears. And if this occurs? You know, once you start, it becomes easier to replicate under various pretexts."