MOSCOW (Reuters) -The Kremlin on Friday warned of “catastrophic consequences” should the EU proceed with plans to confiscate Russian assets held in Western banks. Some Western banks are lobbying against EU proposals to redistribute billions of euros in interest earned on frozen Russian assets, senior industry sources said, fearing it could lead to costly litigation. European Union leaders on Thursday agreed to move ahead with work on a plan to use up to 3 billion euros ($3.24 billion) a year to supply arms to Ukraine as they try to bolster Kyiv’s fight against Russia, which would still own the underlying frozen assets.

Source: Russia warns Western banks of ‘catastrophic consequences’ over asset confiscation