The idea is that Russian money in Euroclear is lent to Ukraine and only get paid back after Russia pays Ukraine reparations
The European Commission will move ahead with controversial plans to fund Ukraine with a loan based on Russia’s frozen assets, but in a concession to concerns raised by Belgium, which hosts most of the assets, the EU executive has also proposed another option: an EU loan based on common borrowing.
This will be very damaging to the Western banking system. Who will trust us with their money?
We humans actually do need to nail down what we almost sort of but not quite accomplished at the end of WWII — come to a mutually enforced international order where vioent aggression against other nations is unacceptable and truly sanctioned.
Intensifying US threats against Venezuela are raising expectations of imminent military action as President Donald Trump heaps pressure on the Caracas regime and flexes power in the Western Hemisphere.
The USA has a long history of ‘helping’ other countries:
But to get back to the OP. I suspect that Russia will survive the loss of a hundred billion or so. But this will give a great boost to BRICS and make the Chinese currency look more attractive.