President Vladimir Putin of Russia has criticized an agreement by Western nations to extend a loan to Ukraine, utilizing frozen Russian assets, and vowed retaliation.

During a meeting with foreign ministry officials on Friday, Putin stated that Western leaders were attempting to establish "some kind of legal basis" for the asset freezes. He emphasized, "But despite all the trickery, theft is still theft and will not go unpunished."

He further warned that Moscow's treatment was indicative that "anyone" could be targeted next and face an asset freeze.

Putin's remarks followed the Group of Seven (G7) members reaching an initial agreement for a $50bn loan package for Ukraine, funded by the interest earned from frozen Russian sovereign assets, which were impounded after Russia's invasion of Ukraine in February 2022.

The G7 includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, with the European Union participating in all deliberations.

Announcing the blueprints at the G7 annual summit in Italy, US President Joe Biden termed the frozen assets agreement a "significant outcome" and stated it was “another reminder to Putin that we’re not backing down.”

The specifics of the agreement will be finalized in the coming weeks, aiming for the funds to be available to Ukraine by the year's end.

However, on Friday, Maria Zakharova, Russia's foreign ministry spokesperson, dismissed the deal, describing it as “just pieces of paper.”

“These agreements mean nothing and hold no legal force,” Zakharova conveyed through Russian news agencies.

Ukraine war

Putin also specified a series of conditions for ending the war in Ukraine, including Ukraine dropping its NATO aspirations and withdrawing its forces from four Ukrainian regions that Russia annexed in a referendum deemed “illegal” by the West and Kyiv.

"The conditions are very simple," the Russian president stated before a Ukraine peace summit scheduled to start on Saturday in Switzerland, with representatives from over 90 nations and organizations attending.

"As soon as Kyiv expresses readiness for such a decision and begins a genuine troop withdrawal from these areas [including Donetsk, Luhansk, Kherson, and Zaporizhzhia], and officially abandons its NATO membership plans – we will immediately order a ceasefire and start negotiations," he added.

“I repeat, we will act immediately. Simultaneously, we will ensure the safe and unimpeded withdrawal of Ukrainian troops.”

Ukrainian presidential adviser Mykhailo Podolyak promptly rejected Putin’s terms.

“It’s all a complete ruse. So – once again – abandon illusions and stop seriously considering Russia's proposals, which are contrary to common sense,” Podolyak posted on social media.

Ukraine's foreign ministry also accused Putin's statement of trying to “mislead” the global community.

Washington also dismissed Putin’s remarks. "He isn't in a position to impose conditions on Ukraine for peace," US Defense Secretary Lloyd Austin told reporters at NATO headquarters in Brussels.

Austin also indicated that NATO would likely not admit new members soon, despite Ukraine's aspirations to join the alliance. "I don't see any desire or indication that we will pursue expansion anytime soon," he mentioned.

LIVE: @SecDef Lloyd J. Austin III briefs the media after a NATO defense ministers’ meeting. https://t.co/PQ2dK1Joqf

— Department of Defense 🇺🇸 (@DeptofDefense) June 14, 2024

Nonetheless, NATO Secretary-General Jens Stoltenberg stated that the alliance would play a more significant role in coordinating military support for Ukraine—a task currently led by the United States.

“These efforts do not make NATO a participant in the conflict but will enhance our support for Ukraine to uphold its right to self-defense,” Stoltenberg said to reporters in Brussels.

‘Point of no return’

In another statement, Putin said the world had reached a “point of no return,” asserting the collapse of the "Western model" of global security necessitates a new and more stable system.

“Clearly, the Euro-Atlantic security structure is disintegrating. It simply doesn’t exist today and needs to be reestablished,” Putin said.

“This situation requires us, alongside our partners and all interested nations—many of which exist—to develop our security measures for Eurasia and offer them for broader international discussion.”

He also mentioned that Russia is open to discussing a new security system with everyone, including the US-led NATO alliance.

“It’s crucial to ensure that the future security framework is inclusive of all Eurasian nations interested in its creation, which includes European and NATO countries, of course,” he elaborated.

“We inhabit the same continent. No matter the circumstances, geography is unchangeable. We must coexist and collaborate in one way or another.”